Finance expert explains Wrexham PSR headroom after £47.8m cash injection | OneFootball

Football finance specialist Kieran Maguire says Wrexham still have room to manoeuvre under the Championship’s profit and sustainability rules, despite about £33m spent on signings last summer and January links to a £19m deal. A minority stake sale to Apollo Sports Capital delivered a £47.8m cash boost that has further bolstered the club’s position.

"When Wrexham were in League Two, they had the highest pay roll and they had the most expensive squad. Last season it was the second highest because Birmingham were there." He was speaking on the Fearless in Devotion podcast.

He noted the club lost about £21m across the past two seasons, yet the division permits losses of £39m over three years, leaving significant headroom at the start of the campaign. Losses may look large by League One and League Two standards, but typical Championship deficits are around £400,000 a week.

Maguire also highlighted that transfer fees are amortised, so costs are spread over a contract. A £20m signing on a four-year deal equates to £5m per year, and a January arrival would count only partially in the current year’s PSR.

"Wrexham's TV money has just gone up from £1.8m to £11m, so there is the capacity to absorb costs." Rising central income and strong commercial growth under Hollywood ownership add further breathing room.

Spending on youth development, infrastructure, women’s football and community projects does not count towards PSR limits. Set against the £39m loss threshold, amortisation effects, increased revenues and the fresh funding, Wrexham’s PSR position appears more stable than critics assume.

Source: Wales Online