Facing $11.3 Million Losses, Rob McElhenney & Ryan Reynolds Insist Wrexham “Not Just a Cash Grab”

$568 million—apparently, that’s the combined net worth of Ryan Reynolds and Rob McElhenney. Beyond their illustrious acting careers, the secret behind their remarkable net worth is that both have a knack for making good investments. But then why has their most prolific investment in Wrexham AFC led them to endure a whopping $11.3 million in losses? Well, that’s because both Reynolds and McElhenney have acquired the Welsh club just to ‘support and enjoy.’

In a world where we see even the greatest of angel investors stress over the slightest of declining profits, these two Hollywood superstars are rather chill and enjoying the process since the completion of their takeover of the Red Dragons in 2021. But on a fair note, that’s exactly what an ideal investor is, as McElhenney claims that he and Reynolds never brought Wrexham with the idea of turning them into a money-printing machine.

The surprising revelation was made during an interview with Sports Business Journal: “We like the idea of a flywheel where each investment is something we really support and enjoy, and it’s not just a cash grab. Anytime we look at a new investment or new opportunity, it’s only because we believe in it.”

Though many would argue that Rob and Ryan may have a motive for splurging $2.5 million on a then-fifth division side just to boost their portfolios, you may want to hear the finances of the club since their arrival. Notably, in the fiscal year ending June 2023, Wrexham reported losses of £5.1 million ($6.4 million), a significant increase from the £2.9 million ($3.7 million) recorded in 2022.

Of course, all of these losses had to be covered by the substantial financial backing of owners Ryan Reynolds and Rob McElhenney. The club currently owes the duo £8.98 million ($11.3 million), with the rising debt aligning closely with the previous year’s losses.

Then again, even if that’s the case, how exactly did Wrexham end up owing so much to Reynolds and McElhenney, and more importantly, what’s the plan to pay them back?

Why are Wrexham at a loss and how do they plan to repay Ryan Reynolds and Rob McElhenney?

The reason why their losses have increased is due to the club’s sharp rise in salary expenditures. Wrexham’s wage bill surged by over 70%, reaching £6.9 million ($8.7 million) in 2023. This spike in expenses comes despite the club generating only £10.5 million ($13.2 million) in revenue during the same period.

When Wrexham revealed their last fiscal year’s record, they mentioned that these losses were actually required for the Red Dragons to achieve their goals in a short time. “These losses were deemed necessary to allow the Club to maximize its full potential in the shortest time practically possible,” the club wrote in their report.

In fact, Wrexham also mentioned there’s actually no rush for them to repay their Hollywood owners. Then again, in the long run, Reynolds and McElhenney would like to get the loan amount repaid. For that, the process is actually in the pipeline. Like for instance, replacing their previous shirt sponsor TikTok with United Airlines.

Other strategic deals with Stok, HP, Meta Quest, Reynolds’ wife Blake Lively-backed Betty Buzz, and kit makers Macron have also helped them to revive from their losses. Not to mention their super-hit documentary Welcome to Wrexham on Disney+. The rest of the job should be done according to their performance on the pitch.