Wrexham's latest accounts show that the club owes their American owners £9 million.

G Guest wrote: March 30th, 2024, 10:18 am Wrexham's latest accounts show that the club owes their American owners £9 million.

I thought under EFL rules there were to be no Directors loans.

Well the club lost £5m in their promotion season. Obviously funded by the owners. Is the rule that loans cannot be used for paying wages? I don,t know much about it.

I believe the £9million is prior to them reaching the football league. I have also read that they are paying interest on the loan at a rate above base rate (3% above I think but could it could be lower). So he is getting a shed load of publicity and a decent financial return on his investment. Getting to and staying in the Premier League seems to be the only way to square that circle.

Wrt loans and the playing budget. There are rules that prevent loans being used to pay wages. If they have any sense the loans already made will have set up revenue streams to prevent them falling foul of those rules while in the EFL. Being able to do so is one of the advantages of financing a team from non-league.

2022/23 Wrecsam :-

Revenue - £10.5m (record for NL and was higher than all league two and most league one clubs

Wages - £6.9m (as above)

Losses - £5.1m (as above)

Ridiculous.

Some very healthy negative profits there.

The debt won't be called in and presumably the rules in the national league (when/where the debt was accrued) are vastly different to those in the EFL? albeit hardly fits the 'plucky underdog' narrative and doesn't look great.

Hilarious if MK Dons pip them to an automatic spot and they lose in the play offs albeit I kind of want them out of league 2 as they are distorting this league, we'll know by the end of the month either way.

CathedralCounty wrote: April 2nd, 2024, 2:54 pm The debt won't be called in and presumably the rules in the national league (when/where the debt was accrued) are vastly different to those in the EFL? albeit hardly fits the 'plucky underdog' narrative and doesn't look great.

Hilarious if MK Dons pip them to an automatic spot and they lose in the play offs albeit I kind of want them out of league 2 as they are distorting this league, we'll know by the end of the month either way.

Why would you call in a debt paying 8.5% interest each year? Decent little earner for life, and will be growing each year.

It is only a decent earner if Wrexham can afford to pay the interest and the club can be sold for the value of its indebtedness or more. Longer term that is doubtful. In the end the owners are likely to have to write the loans off or at least convert them into equity.

Doncaster v Wrexham tonight is an intriguing prospect since Doncaster are the L2 in form team. I'm tempted to pay £10 to IFollow to watch it.

rncfc wrote: April 2nd, 2024, 3:10 pm

CathedralCounty wrote: April 2nd, 2024, 2:54 pm The debt won't be called in and presumably the rules in the national league (when/where the debt was accrued) are vastly different to those in the EFL? albeit hardly fits the 'plucky underdog' narrative and doesn't look great.

Hilarious if MK Dons pip them to an automatic spot and they lose in the play offs albeit I kind of want them out of league 2 as they are distorting this league, we'll know by the end of the month either way.

Why would you call in a debt paying 8.5% interest each year? Decent little earner for life, and will be growing each year.

I'd presumed it was an altruistic interest free loan, 8.5% (presumably compounded?) on say 8 million will get a nice chunk after a few years but again don't think it will ever be paid back as such.

CathedralCounty wrote: April 3rd, 2024, 9:57 am

rncfc wrote: April 2nd, 2024, 3:10 pm

CathedralCounty wrote: April 2nd, 2024, 2:54 pm The debt won't be called in and presumably the rules in the national league (when/where the debt was accrued) are vastly different to those in the EFL? albeit hardly fits the 'plucky underdog' narrative and doesn't look great.

Hilarious if MK Dons pip them to an automatic spot and they lose in the play offs albeit I kind of want them out of league 2 as they are distorting this league, we'll know by the end of the month either way.

Why would you call in a debt paying 8.5% interest each year? Decent little earner for life, and will be growing each year.

I'd presumed it was an altruistic interest free loan, 8.5% (presumably compounded?) on say 8 million will get a nice chunk after a few years but again don't think it will ever be paid back as such.

I'd presumed interest free as well until I heard it was base rate plus 3% on a podcast. A nice little earner alongside the media exposure if true.

I wonder how HJ will cover our losses?