Wrexham have confirmed in an official government document the allotment of a share of the club, worth £7.1million.
Wrexham have been looking for new funding streams and methods for some time now, as their epic journey under Ryan Reynolds and Rob Mac rumbles on.
The Dragons earned promotion from League One last year, making for a third-straight promotion, and in the wake of promotion it was reported that Wrexham are now worth £150million as a club.
It was also reported that Reynolds and Mac were considering selling a share of Wrexham for £350million, with the pair seemingly looking for new investment as the club aims for the Premier League.
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Wrexham confirm £7.1m share has been allotted
Now, a new submission on Wrexham’s Companies House has revealed that one share has been allotted at the sum of £7.1million.
The share was allotted exactly a month ago on September 3rd but has only now been uploaded to Companies House.
Just recently, Wrexham made another upload to Companies House, confirming Mac’s name change from Robert McElhenney to Rob Mac.
What does this mean for Wrexham?
Speaking to Wrexham Insider, football finance expert Adam Williams has explained exactly what this news means, and how the money might be used.
He says: “Allotting shares basically means the board has created new shares which are then bought up by one or more of the club’s existing shareholders.
“When you allot just one share, it’s a way of getting money into the club without changing the ownership structure much at all. They did the same back in March. That time it was £14m.
“The money can be for anything – transfers, wages, general overheads, infrastructure projects, paying down debt. I’d suggest that this is likely to do with the stadium project, though there’s no knowing for sure.
“Issuing shares in exchange for cash also gives you the maximum allowable headroom under Championship PSR.
“You’re allowed losses of £41.5m over a rolling three-season period as long as the bulk of those losses are underwritten by the owners.”
Wrexham return to Championship action against Birmingham City on Friday night, with kick off at 8pm.