Wrexham are ready to shatter their transfer record to sign Nathan Broadhead for £10m, and we can exclusively reveal the financial details behind the deal.
It’s a bold move for Wrexham to splash the cash like this in their first season back in the second tier, but they clearly don’t want to risk being left short this season.
We’re told the injury to Kieffer Moore triggered the push for Broadhead, with Phil Parkinson eager to add to his attacking options for the campaign ahead.
With a £10m deal agreed for Broadhead and his medical booked for today, things are moving quickly. But, it got us wondering just how the Red Dragons can afford to make a move like this.
Where is Wrexham’s money coming from?
The Wrexham Insider can exclusively reveal where the club’s money is coming from, thanks to information from our finance expert Adam Williams, who tells us that Wrexham’s incredible revenue puts them on par with just about any team in the Championship.
He said: “Wrexham’s accounts for 2024-25 will be fascinating. But, unfortunately, we won’t see them until spring next year, so we have to rely on some deduction to work out what they can spend.
“Revenue was £27m in 2023-24 in League Two, which was more than double their total in the National League. In League One, I suspect they’ll have been somewhere around £35m. And the club have said they are expecting turnover of £50m in the Championship.
“That’s unheard of for a team coming up from League One with no history in the Championship. It means that they will generate more revenue than pretty much every club besides those who have recently been relegated from the Premier League and are benefiting from parachute payments.”
Alongside the commercial success, Ryan Reynolds and Rob Mac have also been able to take Wrexham to the next level thanks to their collaboration with the Allyn family.
Williams added: “They’ve got the investment from the Allyn family too, so they don’t need to be concerned about setting aside money for infrastructure investment, the stadium etc.
“The wage bill will be pretty significant by Championship standards, I expect, but nothing so outlandish that they don’t still have scope to spend.”
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How the Nathan Broadhead deal impacts Wrexham’s funds
If and when this Nathan Broadhead deal goes ahead, it’ll take Wrexham’s summer spending to over £21m. That will make them the top-spending club in the second tier by quite some distance. So, how are they even able to afford this kind of deal?
Williams said: “On the one hand, a newly-promoted side spending £10m on a transfer is crazy. But when you consider that they expect to have one of the highest turnovers in the Championship, buying players like Broadhead makes sense.
“Look at the team they are buying him from… Ipswich’s revenue was £37m in their Championship season. Wrexham’s is going to be much higher. This is the market they are shopping in now.”
We also asked Williams about any potential hurdles when it comes to PSR in the future because of this business, but Wrexham fans should not be worried about that.
Williams added: “PSR isn’t going to be an issue because of that, and it means that they can spend £30m-plus on wages, spend £10-15m on transfers, and have £5-10m in other overheads every season before they need to start worrying about going to the owners with the begging bowl.
There is an argument to be had about how sustainable the Wrexham project is in the long term, but – in the short-term – they can be self-sufficient and competitive at the top end of the Championship, if they get the strategy right. That’s unheard of in this division, pretty much.”
So, while we don’t expect Wrexham to do much more this summer, it certainly sounds like the club have a lot more wiggle room for the future if and when they need it.