Earlier this week, it was reported that Wrexham co-owners Ryan Reynolds and Rob Mac could make some rather brutal financial decisions during the summer window in a bid to trim down the squad size.
Wrexham have returned to the Championship and to the second tier of English football for the first time in more than 40 years. And whilst the going is good, with new players arriving almost every week, there is an issue rapidly brewing for manager Phil Parkinson.
Currently, he has 30 first-team players registered at the club, but EFL rulings only allow for 25 registered players in the Championship. That means Parkinson will have to make some difficult decisions in who he not only signs but who he sells before the summer transfer window shuts on the 1st of September.
But the Wrexham players generally earn slightly more than most, even so in the Championship. In a bid to trim the squad size then, Ryan Reynolds and Rob Mac could pay off some players this summer.
The plan is that Wrexham take a minimal transfer fee for said players and instead allow the buying club to effectively pay a transfer fee in the way of wages, paying them similar to what they earn at Wrexham.
Who stays and who goes remains to be seen, and whilst it’s a nice problem for Parkinson to have such a big and improving squad, it will lead to some inevitably tough conversations with players.
Finance expert says Wrexham will likely have a £30m wage bill next season
Many fans might assume who is already up on the chopping block at Wrexham this summer. Many expect Ollie Palmer to leave Wrexham before the end of the window, along with fellow forward Jake Bickerstaff.
There might also be uncertainty over Jay Rodriguez’s future despite his January arrival, with Wrexham now looking to sign Nathan Broadhead along with Kieffer Moore, which could exile Rodriguez from the starting XI.
Then in defence, Jacob Mendy could leave Wrexham on loan, whilst midfield could see some departures with names like Andy Cannon and George Evans potentially up for sale.
Speaking to Wrexham Insider in the wake of news Wrexham could start paying off players in a bid to trim the squad size down, football finance expert Adam Williams had a lot to say, predicting that the Dragons’ annual wage bill will top £30million next season.
He explained: “It’s an interesting situation that Wrexham find themselves in here. I think it hammers home the point that club owners and executives don’t think in terms of transfer fees but rather the total financial commitment.
“If they are making a net saving by agreeing a more modest transfer fee, or perhaps even no fee at all, it makes sense to do so. For the buying club, the risk is that you upset your wage structure and create a spiral where players are demanding more than they are worth.
“For that reason, I think Wrexham might not have as much leverage as they would ordinarily in negotiations. That might impact the saving they make on a net basis, but it will be a saving all the same.
“In terms of paying off the players, if that’s the only way they are going to get within the squad size limit, then it’s a necessary evil. They will be selective about who they get rid of, and it’s not going to have an enormous financial impact.
“Wrexham’s next set of accounts are going to be fascinating. At the moment, we only have their figures from the League Two season. Their annual wage bill was £11m at the time, which was the highest in the division by a country mile. In fact, it would have been the joint-second highest in League One. We’re going to see a big jump again when the 2024-25 figures are released.
“In the Championship, I think we’re likely to see a wage bill of around £25-30m in year one, which is going to be one of the very biggest outside the parachute payment clubs. And because they’re expecting revenue of £50m, I think you can expect to see that increase significantly in the following few seasons. It’s a genuinely remarkable project, and they should lock in a top-six spot by 2027. If they don’t then I think they’ll have underperformed relative to the money they are spending.”
- READ MORE: Wrexham fans say Ryan Reynolds and Rob Mac’s latest move is a ‘huge statement’, they’re buzzing
What was the biggest annual wage bill in the Championship last season?
Last season, Leeds United and Burnley dominated the Championship. Both claimed 100 points in the end with Leeds winning the title on goal difference, and with a huge annual wage bill of £31.7million, per Salary Sport.
So for Wrexham to rack up a wage bill close to the same wage bill that won the entire division last season says a lot about the ambition of the club, and the willingness of owners Reynolds and Mac to continuously pump money into the club.
And there’s more, too. Wrexham are ready to spend £10million on a new striker this summer and it looks like Parkinson will instead sign two for around that amount, with links to Broadhead and Moore.
Both would likely command hefty wages, after previous reports this summer that Wrexham will pay up to £30,000-a-week in player wages this summer.
All of this is very exciting and it puts Wrexham in a good position to continue their momentum into next season, and challenge for yet another promotion. But it needs to be properly managed, as what goes up must eventually come down.