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No decision has been taken on renaming, re-branding, re-location of the club. Many people associated with the club get paid because of Corona?
#New York: Wrexham AFC is the third oldest professional football club in the world. This club has also played in many old international arenas. But that is no longer the case. Now this traditional club plays in the minor leagues of English football. This time Ryan Reynolds and McElhenney of Deadpool movie fame bought the shares of that club. Both have invested 2 million dollars in this case. But no decision has been taken regarding renaming, re-branding, re-location of the club. Due to Corona, many people associated with the club did not get salary. The two actors reportedly paid all those workers and playas as well. But what is the rationale behind such investment moves? Let’s find out!
Why or Wrexham AFC?
It is a very old and traditional name in English football. But this club could not make such an impact in terms of income. Currently, the club survives in the lower division of professional football. Due to the lack of money, there has been a lot of backsliding in the past few years. But whenever its brand value increases, so will the revenue. The club will grow bigger by utilizing the age-old tradition and age-old experience. And all the investment strategies have been made based on that possibility. Wrexham AFC selected for investment. In this case, the brand image and value of Reynolds is also a big issue.
Kenny or Ryan Reynolds?
Reynolds is also a successful investor. He is also called Super Investor in several places. He already has shares in several companies including Aviation Gin, discount prepaid provider Mint Mobile. These brands do not have a huge turnover. Not that famous either. But using its own brand value, Reynolds introduced these brands to the world today. In this case, almost 100 percent sales growth has been seen since the year after the purchase of shares of Aviation Gin. And as the company has become famous, the plan to sell it starts. Reynolds later sold his stake in Aviation Gin for $610 million. The stake was bought by Diageo. The same plan is hidden behind the purchase of shares in this club.
What is the main objective behind investing in areas like Wrexham?
Needless to say, there is another third investor in the form of Reynolds and McElhane. The list includes writer and comedian Humphrey Ker. In his words, a little risk and confidence is required first. In this case, if the club on which the investment is made, the club performs well, then there is no question! After making a decent profit, a good investor should plan to sell the club franchise. This is usually the goal of every investor.
What is the reason behind this trend of investment in European football?
In many cases these days, American residents have been targeted to invest in European football. But the reason behind this needs to be looked into. Since the beginning of 2010, Chinese companies have also been seen investing in European football. The main goal in this case was brand recognition. Creating an image of themselves in the global market. But last year’s coronavirus outbreak, economic collapse and a grievance mentality towards China have weakened this relationship. A cold war has begun between Western economies and China. And American investors have come forward to fill this void of Chinese companies.
Feb 26, 2021 12:31 PM IST