Wrexham AFCA decision to give £18m of public money to Wrexham AFC has been defended by Wrexham council and the Welsh government, following criticism.
The non-repayable grants awarded to the club – owned by Hollywood stars Ryan Reynolds and Rob Mac (formerly McElhenney) – will help fund the new Kop stand at the Stok Cae Ras ground.
Wrexham council said “there are conditions attached to the funding” and the investment will preserve the “unique culture and heritage” of Wales’ oldest stadium, also known as the Racecourse, “for generations to come”.
The Welsh government said “public sector funding will make the crucial difference” to “create a venue that can host competitive international football”.
Stefan Borson, a football finance expert and head of sport at London-based law firm McCarthy Denning, said it was “unusual” for government to help finance such investment through grants that do not have to be repaid, unless such projects were commercially unviable.
“That clearly doesn’t apply in this situation,” Mr Borson said.
PA MediaThe club’s own strategic report, from the summer of last year, recognised the importance of developing the Stok Cae Ras, Mr Borson added.
“It’s very unusual that the government would see fit, in a very strained economic environment, to prioritise the funding of a private football club owned by US entrepreneurs who, between them, have literally billions of pounds of liquid assets,” he said.
It was “highly likely that the owners would have paid for it themselves”, he added, because “it’s fundamental to the football club”.
“Every club in the country has four stands – every club that’s got any ambitions of the Premier League would have four stands,” he said.
Mr Borson questioned how many international matches will actually be played in Wrexham once the new stand is completed – one of the reasons given for using public money.
“I would suggest that they will not play more than one game per season at Wrexham for international football – if that – because the capacity of the ground is clearly a fraction of Cardiff,” he said.
Wrexham AFC said the funding is part a wider Wrexham Gateway Project and regeneration plan for the area.
The improvements also includes upgrading the floodlights, pitch and other stadium infrastructure to meet “the required standards” to host international sporting events.
The club said this will create jobs and “economic uplift” in Wrexham by attracting visitors to the events.
Wrexham council said: “In the absence of grant funding, the club intended to redevelop the Kop stand to a standard suitable for the league that they were playing in.
“However this would not be to a standard suitable for international matches to be hosted in Wrexham.”
It added the grant funding would “enable the redevelopment plans to be enhanced to a standard to enable international matches to be hosted in Wrexham once again”.
The Welsh government said the club and its owners were “providing the majority of funding” but “public sector funding will make the crucial difference” in helping to meet the league requirements and “more demanding international fixture standards”.