Wrexham may be limited by the Racecourse Ground’s redevelopment in the coming campaign, but the financial losses of that work will be worth it in the long run.
Rob McElhenney and Ryan Reynolds have invested heavily in Wrexham since taking over in 2021, and a big part of their plans for the club has always been to improve the Racecourse Ground.
The Kop stand was out of action last season as work began to build a brand new seating area with increased capacity and all the modern trimmings you’d expect from a burgeoning club like Wrexham.
Wrexham intend to make the Racecourse as good as the San Siro eventually, with long-term plans to raise the capacity to over 50,000.
Wrexham will make a fortune when the new Kop is operational
The new Kop won’t be ready in time for the impending Championship campaign, but when the work is complete, Wrexham could be looking at earnings of £15m from matchday revenue.
That’s according to our resident finance expert Adam Williams, who exclusively told The Wrexham Insider: “We don’t have Wrexham’s financial data for 2024-25 yet. That will be released early next year. We do know, however, that they generated £5m in 2023-24, which was up from £3m the previous season.
“Let’s assume they enjoyed a similar percentage increase in 2024-25, so they would be at around £8.3m last season by that logic. If I had to guess what they’d earn at a full capacity stadium in the Championship, I’d probably say around £10m.
“They aren’t going to have a 60 per cent increase in matchday income every year, but with their hospitality offering and ability to charge premium prices for certain areas of the stadium, I think they’ll reach eight figures.
“With the new stand, I think they’ll be aiming for £15m in time. Proportionate to the size of the stadium, that’s going to be one of the best figures in the Championship, if they get the pricing right. They’ve got to be careful to accommodate the bedrock fans too, as they have been successful with so far.”
While Wrexham fans are torn on the new Kop plans, there’s no denying the financial benefits that the renovation will bring.
Wrexham are facing £750,000 loss this season
In the future, Wrexham’s ground will house over 16,000 fans. But, for the 2025/26 campaign, the Red Dragons will be down by around 2,500 supporters, which will obviously see them missing out on a lot of money.
On the impact that will have, Williams added: “In terms of the drop-off in revenue in the interim period, I think we’re probably looking at about £750,000.
“That said, I think natural price rises throughout the rest of the stadium will more than offset that. You’re still going to see a year-on-year increase, even if they don’t hit the heights they might have otherwise at maximum capacity.
“It’s an investment in the future, and the costs of the new stand are exempt from PSR, so it won’t negatively impact their ability to spend as long as the owners are prepared to cover the shortfall. They will do that – that is effectively what the investment from the Allyn family is for.”
Kaleen Allyn is at the heart of various plans at Wrexham, including the Kop stand and the new training facilities. The money from the Allyn family is crucial to Wrexham moving forward in helping to offset any losses and enable the club to compete with the big boys in the Championship.
This short-term loss for the coming season will not be too much of an issue, then, and it’ll all be worth it in the long-term.