Hollywood-Backed Football Club Receives Massive Taxpayer Subsidy
Wrexham AFC, the football club famously owned by Hollywood stars Ryan Reynolds and Rob McElhenney, has received nearly £18 million in nonrepayable grants from the Welsh government despite its wealthy backers and commercial success. The substantial public funding, revealed through UK government state aid disclosures, far exceeds direct support given to any other British football club.
Stadium Redevelopment Funded by Public Money
The grants were distributed through Wrexham County Borough Council as part of a £25 million Welsh government investment to redevelop the area around Wrexham General train station, adjacent to the club's Racecourse Ground stadium. While the council had previously indicated a "substantial amount" would benefit the club, it hadn't disclosed that Wrexham AFC would directly receive the majority of this funding.
According to state aid records, the council made two direct grants to Wrexham AFC Limited: £3.8 million in February 2022 followed by a £14 million payment in September. The club's 2023 accounts also reference £4 million in "deferred grants."
Financial Experts Question Funding Priority
Football finance expert Stefan Borson raised significant concerns about the arrangement. "This looks like an £18m nonrepayable subsidy to a privately owned business now flirting with a £350m valuation," he stated. "Its existing owners are US-based and very wealthy and liquid private individuals."
Borson highlighted that while "the club, and its owners, will benefit from the stand for the next 50 years, at no point would the taxpayer be repaid or directly profit from the club's rise." He questioned why funding a football stand would be a government priority given the circumstances.
Hollywood Success Contrasts with Public Funding
The Welsh government funding arrived alongside the club's remarkable commercial transformation under its celebrity owners. Reynolds and McElhenney, who completed their takeover in 2021, have produced the hit Disney+ documentary "Welcome to Wrexham," which reportedly attracted up to 5 million viewers per episode.
Although the documentary doesn't directly revenue the football club, it has helped secure sponsorship deals with global brands including Meta, United Airlines, and TikTok - partnerships that would be coveted even by Premier League teams. The club's turnover skyrocketed from £10.5 million in 2023 to £26.7 million in the year to June 2024, with some reports suggesting current revenues could reach £50 million.
Local Budget Pressures Add to Controversy
The substantial grant comes amid financial strain in the local area. Wrexham.com recently reported an alleged "budget crisis" in some city schools, with institutions potentially forced to cut spending to address a £3 million budget deficit. Council leader Mark Pritchard warned that "redundancies will be inevitable" if the Welsh government doesn't increase the £263 million council budget.
The council emphasized that funding for the stadium project came exclusively from Welsh government grants rather than council budgets. They stated the redeveloped Racecourse Ground must host other sporting events and concerts, creating "additional benefits for the residents of north Wales."
A council spokesperson defended the investment, noting the stadium is "an important cultural and heritage asset for the city of Wrexham" and that improvements would "enable international matches to be hosted in Wrexham once again."
A Wrexham AFC spokesperson highlighted the project's economic benefits, stating it would create "a catalyst for local job creation" and provide "an overall economic uplift to the region" through increased visitor numbers.
The £18 million grant provides Wrexham with a significant competitive advantage over rival clubs. For comparison, Stockport County, which finished just below Wrexham last season, generated £9 million in revenues, while other clubs received substantially smaller amounts: Plymouth Argyle (£2 million), Swansea City (£400,000), and Bradford City (£670,000).
