Takeovers do not always result in success. Yet, for Wrexham AFC – where Hollywood stars Ryan Reynolds and Rob McElhenney took over in 2021 – it has been a fairytale ride so far. With three consecutive promotions, the Welch club has ascended the English football pyramid from the fifth tier National League to the second tier Championship.
So, what comes next for the Red Dragons? Can they do the unthinkable and reach the Premier League next season? Or should they be wary of such a rapid ascend and consolidate their position in the Championship?
Chance of promotion to the Premier League
Before Wrexham’s feat, no club had ever won promotion in three consecutive seasons in England’s top tiers. The next step – promotion to the Premier League – will be even more difficult (odds are 8/1 for 2025/26).
Only Luton Town has made the ascend from the National League to the Premier League. A journey that took them 11 years. However, after reaching the topflight, the Hatters were less successful. They incurred successive relegations and will play in League One in 2025/26.
Consecutive promotions between League One and the Premier League is rare as well. Only five teams have done so and with mixed results once in the Premier League. Ipswich Town, Manchester City, and Watford were relegated after one season. Norwich City lasted three seasons, while Southampton stayed up for 11 seasons.
Since 2014/15, only three teams – Wrexham, Burton Albion and Luton Town – have won back-to-back promotions between League Two and the Championship. Luton Town ascended further, while Burton Albion was relegated after their second campaign.
Generally, avoiding relegation is the main objective for promoted sides. One that is more difficult to achieve the higher up the pyramid. Between 2014/15 and 2023/24, 27 percent of the promoted sides in the Championship were relegated after one season. Only half of the teams made it beyond two seasons.
Championship Consolidation…
Wrexham’s promotion is wonderful and is accompanied by prestige, bigger games, and more revenue. Yet, it also comes with higher costs and extra requirements. Multiple clubs have lost big, some even by going into administration, by aiming for too much too fast. Therefore, Wrexham’s aim should maybe be consolidation and avoiding relegation, rather than going all out for promotion to England’s topflight.
If I’m being honest I don’t even know what the word “consolidation” means 😬 @Wrexham_AFC
— Rob McElhenney (@RMcElhenney) May 1, 2025
Co-owner McElhenney is not one for consolidation though. “If I’m being honest I don’t even know what the word “consolidation” means,” he tweeted mere days after the club’s promotion to the Championship.
Wrexham’s performance as promoted side
| League – season | Win % | Points per game | Goals for per game | Goals against per game |
|---|---|---|---|---|
| League One – 2024/25 | 59% | 2.00 | 1.46 | 0.74 |
| League Two – 2023/24 | 57% | 1.91 | 1.93 | 1.13 |
| National League – 2022/23 | 74% | 2.41 | 2.52 | 0.93 |
Increasing revenue
By promoting to the Championship, Wrexham’s revenue will increase significantly. In 2023/24, Championship clubs generated on average £40 million in revenue. With a difference of £111 million between the highest (Leeds United: £128 million) and lowest (Preston North End and Rotherham: £17 million) revenue generating clubs. In League One clubs earned on average £9.1 million, 23 percent of the average Championship side.1
Wrexham generated with £26.7 million2, four times as much as the average League Two club (£6.6 million) in 2023/24. It was also 2.55 times as much as they generated in the National League the year prior. The £10.48 million they generated was already more than clubs in League Two (£5.5 million) and even League One (£9.8 million) earned on average in 2022/23.
Sponsorship and advertising contributing more
Revenue has been increasing since the takeover and as the club ascended the pyramid. Yet, the increase is not down to just more revenue from playing in a higher division. In 2021/22 – while just missing out on promotion from the National League – Wrexham generated £5.97 million. Matchday admissions (£2.4 million) accounted for 40.1 percent of the club’s revenue.
By 2023/24, matchday admissions – despite increasing by 59 percent to £3.8 million – accounted for only 14.2 percent of overall revenue.
Driving factor behind this is Wrexham’s commercial strength which has also resulted in their revenue being above league averages. The American owners have marketed the club in such a way – not least with the Welcome to Wrexham documentary – that there are a lot of commercial opportunities and room to grow.
Which is reflected in sponsorship and advertising revenue having increased 12.5 times from £1.05 million to £13.18 million between 2021/22 and 2023/24. While it accounted for 17.6 percent of total revenue in 2021/22, it has increased to almost 50 percent. It is likely to increase further with the extra exposure the Championship will bring.
Likewise, England’s second tier will also increase other income sources even further. Between 2021/22 and 2023/24, revenue from Football (5.7 times), Matchday Commercial (4.8) and Retail (3.4) already increased significantly as well.
Top five sources of Wrexham’s turnover in 2023/24 [source: club’s annual reports2]
| What | Revenue | Percentage of total |
|---|---|---|
| Sponsorship and advertising | £13.18m | 49.3% |
| Retail | £4.46m | 16.7% |
| Matchday admissions | £3.81m | 14.2% |
| Football | £3.04m | 11.4% |
| Matchday commercial | £1.21m | 4.5% |
Costs rising
The club seems to (have the potential to) generate the revenue that is necessary to cover higher spending on transfers fees and wages so they can compete at a higher level.
During Wrexham’s promotion chase in recent years, the club has relied on attracting players from higher leagues. In January 2022, for example, they acquired Ollie Palmer for £300,000 from AFC Wimbledon. Playing in League One, the striker dropped two tiers to join.
However, such strategies are harder to pull off in the Championship. Wage costs will rise even further. Something that has already happened along with the promotions.
In 2021/22, Wrexham spent £4.05 million on wages (includes players and other staff). This increased by 71 percent to £6.91 million the following season. When the club promoted to League Two, wages increased to £11.04 million.
What the club spent on wages in League One is not yet know but will likely have been significantly higher. Especially given that the average wage costs per club was 78 percent higher in League One than in League Two in 2023/24.
According to former executive director Humphrey Ker, the club needs to quadruple their wage bill – compared to their League One wages – to be competitive in the Championship. Even compared to their League Two wage bill this would already put them above the average 2023/24 Championship side (£37 million). With those relegated in 2023/24, spending on average £20.3 million, while the three promoted sides spent on average £77.7 million.
Infrastructure investments
However, to compete at a higher level, investments in squad quality alone is not enough. For the long run the club needs to invest off the field as well. Especially in infrastructure like the stadium, training grounds, and academy.
When taking over, Reynolds and McElhenney were clear about the importance of the Racecourse Ground. To own the ground again – which was realised in June 2022 – and develop it to make it future proof.
Initial plans aimed for the return of a four-sided stadium by bringing the Kop back in use. Planning applications highlighted how the development would add 5,500 seats to the 10,500 capacity Racecourse Ground.
Yet, the club’s rapid progress and popularity increase in recent seasons has made the owners decide to revise the Kop plans. With a revised planning application approved that has the potential of the Kop Stand capacity increasing to around 7,500.
In the long run the club hopes to develop all four sides and end up with a capacity of 45,000 to 55,000 – which would be Premier League and European proof. For now, a temporary Kopp Stadium brings the capacity to 13,341. Which gives Wrexham the second lowest stadium capacity amongst 2025/26 Championship clubs. Likely causing them to generate less matchday admission revenue than their rivals and having to rely more on other income sources.
External investments
Wrexham’s revenue is expected to reach £50 million in the Championship. Yet, with costs increasing it would not be surprising if the club incurs (small) losses. In 2023/24, they reported losses of £2.73 million. An improvement on the £5.11 million loss in 2022/23.
The club’s thirst for long term success and willingness to invest to achieve it, is visible in the players they acquire and the infrastructure plans. Furthermore, by having attracted outside investors. In October 2024, American billionaire family Allyn acquired a minority stake of near 15 percent.
At the time, the club was valued at around £100 million. A major increase from the £2 million Reynolds and McElhenney invested in 2021. By promoting to the Championship, Wrexham’s valuation is said to have risen to £150 million. With the club rumoured to consider another minority stake sale, which could come at a £350 million valuation.
So far, Wrexham has already done something historic by recording back-to-back-to-back promotions. Promotion to the Premier League will be incredibly difficult, let alone within one season. Major investments are required to compete and have a shot, with all risks associated. For now, the owners are going full force ahead as they have done ever since taking over and seemingly with a solid strategy. Who knows whether they can add the next success to their Hollywood story.