A football finance expert has now explained how much Wrexham can spend this summer ahead of their return to League One.
Wrexham’s rise from the National League to League One has been truly phenomenal.
The Reds have achieved back-to-back promotions under the guidance of Phil Parkinson and Hollywood owners, Rob McElhenney and Ryan Reynolds don’t plan on stopping there.
Reynolds has revealed his ambitions to do whatever it takes to get Wrexham up into the Championship and that implies him unleashing his chequebook this summer.
Wrexham have already shown an interest in breaking their transfer record to land Brighton’s Marc Leonard, which would smash the £300,000 fee that took Ollie Palmer from AFC Wimbledon to the STōK Cae Ras in January 2022.
It shows their intent to compete against the league’s big hitters to seriously mount a promotion push.
How much Wrexham can spend this summer
The Welsh side were able to outspend their rivals in the previous two campaigns due to the riches of McElhenney and Reynolds.
Although the gap has somewhat closed since their promotion to League One, as their revenue rises in the third tier, so will their capacity to spend, meaning supporters could be in for yet another exciting summer.
TBR Football Finance Expert Adam Williams explains, telling The Wrexham Insider: “Back-to-back promotions and a truly extraordinary commercial strategy mean that, despite operating at loss in the most recent financial year on record, Wrexham are cash rich.
“There are some huge clubs in League One, which means Wrexham can maximise their matchday income next season too.
“The club froze season ticket prices on an early bird basis, so they will also get a significant chunk of that pot up front.
“In League Two, the EFL’s financial rules dictated that Wrexham could spend no more than 55 per cent of their turnover on wages.
“In League One, the figure rises to 60 per cent.
“Wrexham’s turnover in 2023-24 is believed to be about £20m, so that would give them a spending limit of £12m based on their current position.
“But as their revenue rises in League One, so will their capacity to spend. They already have turnover roughly equivalent to mid-size Championship clubs which, like almost everything about Wrexham, is pretty unprecedented.
“I’d expect it to be another busy summer.”
The key figure to take from that is Wrexham’s huge turnover of £20 million gives them a limit of £12m to spend based on their current position. Although they’re unlikely to fork out anywhere near that much, especially when Parkinson said he’s looking at bargains in the window, it’s good to know the option is there.
Wrexham receive boost in Arthur Okonkwo pursuit
Wrexham’s key priority in the transfer window is landing talented goalkeeper Arthur Okonkwo.
The 22-year-old flourished on loan at the Racecourse Ground last term and such form has warranted interest from several Championship clubs.
Wrexham remain keen on landing Okonkwo following his release from Arsenal, and co-owner McElhenney has said there’s a very good chance he will return to the club.
That was a boost every supporter wanted to hear and now knowing roughly how much they’ve got to spend this summer, the Reds can compete financially against clubs in the Championship and across Europe.
Of course, Wrexham wouldn’t have to pay a penny to land the young goalkeeper, although wages were said to be a sticking point previously, reportedly paying less than half of his wages.
But, following this latest update on their finances and McElhenney’s confidence in securing a deal now offers real hope of him returning.
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