How Birmingham City's new financial update compares to Wrexham AFC | OneFootball

FLW compares the two clubs' current financial landscape

Birmingham City and Wrexham have transformed the attention given to League One this season, with both clubs under the ownership of well-known American investors.

Just two years ago, Blues and the Red Dragons were four divisions apart, but have competed as equals this term for the first time in 30 years - ironically the last time Birmingham found themselves competing in the third tier.

Ever since the two clubs' respective takeovers by Knighthead Capital Management - fronted by Tom Wagner and Tom Brady - and the Hollywood duo of Ryan Reynolds and Rob McElhenney, those within the boardrooms at St Andrew's @ Knighthead Park and the Stok Cae Ras have made their lofty ambitions no secret.

As well as April representing a crunch time of the season in terms of the League One promotion race, in which Blues hold a significant advantage over the North Wales side, it also coincides with the start of a new tax year.

With that in mind, both clubs have recently published their latest set of accounts, and FLW has compared the two.

Wagner acquired Birmingham back in July 2023 under Shelby Companies Ltd - a subsidiary of Knighthead - for 45.98%, as well as taking full control of St Andrew's.

It has been revealed via Companies House, that the American ownership group made a pre-tax loss of £16.1m, which is an improvement on the club's final accounts under Birmingham Sports Holdings Ltd (BSHL), who made an approximate £25.1m loss during a year full of fan-organised protests in B9 amid financial uncertainty and a half-open stadium.

Birmingham posted a rather impressive revenue stream of £28.1m, which was a 45% increase. However, a loss of £13m regarding operating costs and a £33.3m wage bill - which also increased by 17% - saw the West Midlands outfit post the aforementioned pre-tax loss.

Blues' overall asset value had increased from £31.32m to £77.05m in the fresh set of accounts, whilst also having a net cash figure of £48.08m at their disposal.

Wrexham AFC's latest set of accounts include club-record turnover

In North Wales, Phil Parkinson's side also reported a pre-tax loss, this time a figure of £2.72m.

However, what highlighted the club's ever-growing profile, especially from a trans-Atlantic point of view, was the club posting a record turnover of £26.725m, which represented a 155% growth on the 2022/23 accounts, in which a revenue stream of £10.478 was recorded.

It was also noted by the club that over 50% of turnover came from outside the UK and Europe - predominantly in North America, due to the well-documented Disney Plus series, Welcome to Wrexham, although no direct additional income is made on that front.

The Red Dragons are also debt-free after paying a £15.02m plus interest figure to R.R McReynolds Company LLC - a subsidiary of the club, but also spent approximately £11m on wages throughout the season - which was 59% above their nearest competitors, Bradford City, as well as earning three times as much as any other League Two club in the division's history.

Furthermore, £0.824m of the pre-tax loss was as a result of the club regaining League One status for the first time since 2004/05.

Birmingham City and Wrexham could both feature in next season's Championship

Both encounters between the two third tier clubs brought global attention to the Second City and North Wales, with the likes of David Beckham in attendance back in September as Chris Davies' side ran out 3-1 winners, before a 1-1 draw was played out in mid-January between the promotion rivals.

Wagner hasn't shied away from Blues' lofty ambitions, which include plans for a 60,000-seater stadium at an estimated £2-3bn cost, as the club look to end their Premier League exile sooner rather than later, having last featured in the top flight 14 years ago.

Meanwhile, Reynolds has also held the dream of taking Wrexham from non-league to the Premier League, after he and his Hollywood partner acquired the club for just £2m in the winter of 2021.

Both clubs are, unsurprisingly, packing out their stadiums, with Birmingham averaging approximately 26,262 supporters at St Andrew's, whilst the Racecourse is often full to the brim with an average attendance figure of 12,781 amid recent ground improvements.

They are also securing a breadth of high-profile sponsorship deals such as Undefeated, Delta Air Lines and Heineken from a Blues perspective, whilst Wrexham have partnered with the likes of United Airlines and HP.

It remains to be seen how the two clubs would compete in the Championship if both were to be promoted next term, with the clubs' current financial resources also chalk and cheese when comparing the club-record fees to sign Jay Stansfield and Sam Smith.