Wrexham have just agreed a ‘brilliant’ and unique deal
Wrexham’s unconventional deal with the Welsh government is a smart move by the club to aid the redevelopment of The Racecourse Ground.
That is according to football finance expert Dr Dan Plumley who has exclusively told Football Insider that Wrexham have made a “shrewd move” financially.
Wrexham have faced criticism for taking £18million of non-repayable grants from the Welsh government to help fund a rebuild of their Kop stand.
Owned by American stars Ryan Reynolds and Rob Mac, Wrexham are valued at £350m and have recently sold a minority stake of the club to Apollo Sports Capital.
Wrexham deal has ‘not gone down well with the general public’
Speaking exclusively to Football Insider, Plumley does not criticise Wrexham for taking the grant despite it not being the usual thing to do.
“There are two things to this, two ways to approach it. And, look, both are right,” Plumley said.
“I think if you look at it first of all from the wider perspective, it’s very unusual that a club would get a non-repayable grant from the government to support stadium funding. That’s not how football works. Normally these things are funded by owners.
“Lenders of corporate finances we have alluded to with other examples. So a non-repayable grant in that regard is, and you can understand why that’s not gone down too well with the general public. Because it’s obviously linked to taxpayers’ money ultimately. But listen, from the club side of things, you’re not going to turn that down.
“So, you know, however they’ve managed to structure that deal or whatever the way that played out, it is a shrewd move from the club financially to get that money in. And that obviously doesn’t necessarily boost the finances, but obviously, it’s a cost you’ve not got to bear as a club.
“So £18m they would have had to have found that equivalent somewhere else, whether that be through the owners or, as I say, corporate lenders of finance who are probably going to attach an interest rate and repayment terms.
“And they’ve managed to get £18m with no interest and non-repayable. So for the club, a brilliant deal, but it is unusual in football stadium financing.“
Wrexham set for Man United clash
Wrexham are planning a pre-season friendly with Man United ahead of next season, with the contest set to be held in Scandinavia.
The friendly could be worth up to £5m to Wrexham and Man United due to ticket revenue, commercial opportunities and TV rights.
Wrexham last faced Man United in a pre-season match in America in 2023, with the Red Dragons winning 3-1.