Wrexham’s seemingly impossible dream of a third-successive promotion has become a reality, but it’s going to cost the club a pretty penny in player bonuses.
It has been an incredible story for Wrexham over the last four years, rising from National League obscurity to become a Championship club with a worldwide following.
It’s in no small part thanks to the financial backing and marketing know-how of Rob McElhenney and Ryan Reynolds, who have put the Red Dragons on the map both in terms of football and business.
Rival fans may bemoan Wrexham’s financial muscle and how it has brought them success, and while money is not the be all and end all, we have to acknowledge it’s influence on the story Wrexham are telling.
Wrexham player bonuses will cost a pretty penny
Promotion from League One will naturally bring great financial reward for Wrexham, which only strengthens their hand in the coming years (if they can stay in the Championship, of course).
But, going up will also cost the club a fairly decent amount of money, too, as player bonuses need to be paid out now.
As per a report from The Athletic, Wrexham are now set to pay out £1.49m in player bonuses based on the success achieved, as well as having to make good on various promotion clauses and add-ons they included in negotiations to sign new players.
But, Wrexham have made some very smart decisions to limit the impact of these costs. At the start of the season, it is said the club took out an insurance policy dedicated solely to bonus payments to give Wrexham an £850,000 relief if and when they would need to be paid out.
That will go a long way towards paying off those hefty rewards Wrexham now owe, and is a shining example of the shrewd moves the club is making to stay in a strong financial position while achieving huge success on the pitch.
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How Wrexham plan to spend in the summer to prepare for the Championship
In the wake of gaining promotion, Rob McElhenney insisted Wrexham are ‘not done yet’, and we know that he and the other Wrexham chiefs intend to go all out to keep this fairytale story going.
It is thought McElhenney and Reynolds have a £40m plan in place for their assault on the Championship, with Phil Parkinson expected to be backed substantially as he looks to establish Wrexham in the second tier.
Rob and Ryan have technically lost a lot of money at Wrexham, but it’s all part of the process of running a football club, really. The club’s commercial growth has been staggering, and ultimately, that, twinned with the rewards of promotion, outweigh the losses and the investment, especially if this all continues long-term.
Now, Parkinson just needs to uphold his end of the bargain next season and beyond. If he does, the Wrexham owners may have to bow to demands for a Phil Parkinson statue to be built, which will also not come cheap!