Wrexham owners sell part of club to US investors as club gets boost for development of the Racecourse Ground.
Ryan Reynolds and Rob McElhenney sell Wrexham stake to US private equity group.
Three months after the football team received £14 million in public subsidies, Wrexham owners Ryan Reynolds and Rob McElhenney sold a portion of the business to US private equity investors Apollo.
Apollo Sports Capital, a division of the New York-listed investor, made the investment known to the Welsh club on Monday. It stated that Reynolds and McElhenney, who has changed his name to Rob Mac, will continue to be the primary shareholders but did not disclose the amount of the investment.
According to the club, the investment will aid in funding the construction of Wrexham’s Racecourse Ground, also known as Y Cae Ras in Welsh. Apollo is one of the biggest investors in the world, managing assets worth up to $840 billion (£630 billion). Nottingham Forest, a Premier League team, has previously received a loan from it.
Thanks to the support of Hollywood owners Reynolds, the producer and star of the Deadpool movie franchise, and McElhenney, the creator of the comedy series It’s Always Sunny in Philadelphia, Wrexham has climbed the English Football League to the Championship. The Disney TV documentary Welcome to Wrexham, which has tracked the team’s successive promotions, has helped them draw in major sponsors and increase the company’s valuation.
The possibility of substantial government funding probably made Apollo’s investment more alluring. According to state aid records made public this month, Wrexham AFC received £14 million in non-repayable funds on September 17 after getting £3.8 million the previous year.
“The investment from Apollo is a significant milestone and likely at a record pre-money valuation for a Championship club,” he said, referring to a report by Bloomberg that Wrexham was valued at as much as £350m.
“It confirms the commercial attraction of Wrexham to one of the largest investors in the world,” he said. “Alongside the existing owners, this provides the club with substantial funding for the development of the stadium and a push for the Premier League. However, in that context, the Apollo investment raises questions again as to why the Welsh government needed to provide £18m of non-repayable grant.”
In a joint statement, McElhenney and Reynolds said: “From day one, we wanted to build a sustainable future for Wrexham AFC. And to do it with a little heart and humour. The dream has always been to take this club to the Premier League while staying true to the town.”
Lee Solomon, an Apollo partner, said: “Wrexham is on an incredible journey, and we are thrilled to be a part of it and to support the club, the Wrexham community and Rob and Ryan. This is a multifaceted investment where Apollo Sports Capital can provide long-term, patient capital to help Wrexham reach its goals and to contribute to the ongoing revitalisation of the facilities and local economy.”