Dan wrote:They might not actually need to put any money in funnily enough. Once it gets out around the world that they’ve bought Wrexham you’ll have film buffs and fans of theirs buying Wrexham shirts, memorabilia & then you’ll have sponsors queuing up etc so if it really takes off they’ll be raking it in from that.
Look at the link to the Bloomberg article. They aren't paying anything.
They've bought the club so they can make a documentary, that they can sell for £300k per episode and make very cheaply.
In a webcast presentation on Sunday to the Wrexham Supporters Trust, the fan-controlled non-profit that’s owned the club since 2011, Reynolds and McElhenney outlined plans for what was described as a Netflix-style documentary that tracks the team’s fortunes. Such a deal would follow other teams that have gotten the streaming-platform treatment, such as Manchester City, Tottenham Hotspur, Sunderland AFC and Leeds United.
For those clubs, the documentaries were just one strand of the business — and a small one at that. The Hollywood approach to Wrexham seems different, because it looks like the prospective show is key to why they want the club in the first place.
From a business perspective, buying Wrexham as a vehicle for a Netflix show makes sense. Since the club is now supporter owned, the two actors won’t pay anything to acquire it up front. Instead, they’ve pledged to invest 2 million pounds in the club’s infrastructure, playing squad and facilities. And it’s not unreasonable to expect Netflix, Amazon Prime or whoever might acquire the broadcast rights to spend several hundred thousand pounds per hour on a show, according to Ampere Analysis analyst Richard Broughton.
If we assume that the actors are able to charge 300,000 pounds an hour for an eight-part series, that could boost Wrexham’s annual revenue by 2.4 million pounds. As owners of the team, Reynolds and McElhenney wouldn’t have to pay an additional cut to anyone else, as the producers of the other soccer documentaries did. So they could reasonably look at profit representing 25% of that income, or some 600,000 pounds. This would handily move the club from the red into the black, as Wrexham otherwise expects to make a loss of 300,000 pounds on revenue of 2.1 million pounds this year. The owners’ star power could boost the numbers even higher.
They've essentially 'borrowed a club' to make a documentary, and.in return promised 2m of investment in the future, with no upfront costs. When the demand for the documentary dries up, expect them to jump ship immediately.
You've got to go there and come back, to know where you've been.