Wrexham can be ‘very competitive’ in League One, says finance expert Kieran Maguire

Football finance expert Kieran Maguire says Wrexham will be able to compete in League One next season after the Welsh club secured their second successive promotion.

Twelve months ago the Dragons won the National League title to end their 15-year EFL exile.

“It is going to become more challenging,” said Maguire.

“If you have got the likes of Sheffield Wednesday or Birmingham City coming down [from the Championship], which is a possibility, all of a sudden clubs who are used to getting crowds in the 20,000-25,000 or even more bracket become your competitors, and they have got budgets which are set accordingly.

“It’s a slightly bigger pond, but I do think Wrexham, because of their success commercially, will be in a very strong position to be very competitive next season.”

Wrexham are beginning preparations to compete in the third tier for the first time since 2004-05.

The club’s fortunes have been transformed since Hollywood stars Ryan Reynolds and Rob McElhenney took control of the club in February 2021.

Phil Parkinson’s team lost in the National League play-offs in Reynolds and McElhenney’s first full campaign at the helm, but overcame Notts County in an epic title race last season.

Last weekend’s 6-0 triumph over Forest Green saw Wrexham guarantee a top-three place in League Two with two games to spare.

‘It comes down to level of ambition’

Maguire says “there’s no doubt” Wrexham’s outgoings will increase in League One.

“Then it comes down to the level of ambition of the owners,” he told BBC Radio Wales.

“They can’t pay Championship wages in League One because the average wage in League One is probably in the region of £2,000 to £2,500 a week. You move up to the Championship and the average is £12,000 a week.

“I don’t think that will be sustainable based on Wrexham’s financial strength, but it is financially strong.

“I think they will be able to compete with the best of League One and they should be setting their targets accordingly.”

Wrexham’s most recent accounts, for the year ending 30 June, 2023, showed Reynolds and McElhenney increased their funding of the club from almost £4m to £9m during the National League title-winning campaign, while turnover almost doubled to £10.5m and losses increased by £2.2m.

Maguire says the nature of Wrexham’s ownership means the club can bring in revenue that rivals cannot.

“I think because of the connection with the owners, Wrexham can continue to leverage on this whilst they continue to be successful on the pitch and they are seen from an American audience point of view in particular as being quirky,” he said.

“The pre-season tours of America are popular as well. So there is still the opportunity to grow that fanbase and sell merchandise and other content accordingly.”