Lamps
Well-Known Member
They were under different rules then. The £39m loss over 3 years is for FFP in the Championship which is known as profit and sustainability (P&S)Wrexham are well under at the moment but with PSR they could fall foul of the rules.
They have made a loss of £10.7m over the last 3 published accounting periods from 2021-2024. That is well below the £39m loss they're allowed to incur.
The 25/26 accounts will be the interesting ones though. I can't see how revenue will have increased that much for them and they are spending multi millions on single transfers now and making a lot of them.
League One and League Two Clubs follow the Salary Cost Management Protocol (“SCMP”) These state that Clubs can only spend a fixed percentage of its revenue on player wages etc. This limit can also be added to or impacted by equity injections or net transfer spend. This is now lower than it was before the start of this season because of what Wrexham and Birmingham did. It is now 60% of income for players expenditure in League One and 50% for League Two. But owners can donate as much as they like and the % of this can go on players expenditure. That's how they got to spend so much. They have a clean slate on entry to the Championship.
That's how Birmingham got to spend lots like £15m on Stansfield.