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The recent rise of Wrexham FC, now valued at £9 million after being purchased for £2 million in 2021, provides a stark contrast to Lewes FC, who recently claimed a valuation of £7.5 million. Seemingly downgraded from £10m a month ago. I use Wrexham AFC as an example as it is the closest example to our valuation. While Wrexham’s growth and valuation is rooted in strategic ownership and commercial success, Lewes FC’s valuation raises questions about its basis and credibility. Let’s investigate!
Wrexham FC: A Model of Commercial Growth
Since Ryan Reynolds and Rob McElhenney’s takeover, Wrexham FC has grown 300% in value. Here’s why.
- High-Profile Ownership: The Hollywood duo brought celebrity appeal, significantly boosting the club’s profile and reach.
- Media Exposure: The “Welcome to Wrexham” docuseries has attracted a global fanbase and generated substantial interest in the club.
- Asset Acquisition: Wrexham secured ownership of the Racecourse Ground, adding tangible value to the club’s assets.
- Sponsorship Success: Major brands like TikTok and United Airlines have flocked to sponsor the club, ensuring steady and substantial revenue.
- On-Field Progress: Promotion to the English Football League (League Two) has elevated Wrexham’s standing, making it more attractive to investors and fans.
These factors have combined to drive Wrexham’s valuation up 300% in just a few years. The club is now a sponge for investment and sponsorship, firmly grounded in the financial realities of modern football. It is widely valued at £9 million. With this startling success how can Lewes FC be worth £7.5 million. Easiest answer ever. It isn’t. Whether it has any real value is a serious question.
Lewes FC: A Community-Driven Proposition
By contrast, Lewes FC’s £10 million valuation seems to stem from a completely different proposition. As a fan-owned, not-for-profit club with a focus on gender equality through our “Equality FC” initiative, the valuation reflects our unique ethos rather than financial or commercial strength.
However, this approach comes with its challenges:
- A Failed Takeover Narrative: The £10 million valuation appears to have been influenced by the proposed investment from Mercury 13, the women’s sports investment group. Mercury 13 offered to invest £5 million. Valuing the club on the basis of a failed negotiation lacks any credibility whatsoever.
- Diminished Appeal: The club’s women’s team has slipped from the FA Women’s Championship to the third tier, significantly reducing its marketability. Outside the top two tiers, interest in women’s football is minimal.
- Limited Sponsorship Interest: Unlike Wrexham, Lewes has struggled to attract meaningful investment or sponsorship, despite years of sustained effort.
- No Ownership of Assets: Lewes FC’s ground is owned by the council, and the club itself requires significant investment to reach higher league standards. These factors diminish its appeal to potential investors.
- Fan Ownership. A potential sale is not possible as it is fan-owned. In our case valuing Lewes FC itself based on its use of a council-owned ground and fan ownership, the valuation is tied to operational potential, not asset ownership—raising questions about the practical validity of the asset.
The Equality FC Brand: A Noble but Limited Proposition
While the “Equality FC” branding is something to be proud of, it has struggled to deliver tangible commercial returns. The unfortunate reality is that mainstream interest in women’s football remains limited outside of international competitions. This is compounded by broader issues of misogyny within football and society, challenges even Lewes FC hasn’t fully overcome.
Moreover, the hype surrounding women’s football has largely focused on major clubs with established infrastructures, leaving smaller community clubs like Lewes marginalized. Even if the women’s game were to grow significantly, the focus would likely shift to large stadiums and big-name teams, drowning out smaller initiatives.
Self Aggrandizement?
Lewes FC’s valuation appears to rely on a combination of idealism and the financial backing of loyal supporters. The club has historically depended on donations and bailouts to stay afloat, with little progression on the pitch in over a decade. It raises the question: is this valuation grounded in financial reality, or is it simply a reflection of hope and goodwill?
When possible “investors” are primarily long-term donors repackaged under a different label, the distinction between investment and donation becomes blurred. Without significant external interest or revenue growth, the valuation seems more aspirational than realistic.
The Path Forward
The key question for Lewes FC is whether it can turn its values and unique ethos into sustainable financial success. The new £1 million fundraising effort look great, but concerns remain about how this money will be used. Without a clear and effective strategy, there’s a risk the funds could be frittered away, leaving the club in the same precarious position it has faced for years. Remember all of the recent big deal strategies and growth agendas which were pie in the sky?
The scent of tension at the top of the club regarding its direction further complicates matters. For Lewes FC to thrive, it must reconcile its community-driven mission with the realities of modern football economics. Failing to do so risks not only financial instability but also alienation of the very fans and members who sustain it.
In Conclusion
Wrexham FC’s valuation is rooted in a well-executed commercial strategy, bolstered by celebrity owners, media exposure, and competitive success. Lewes FC’s valuation, on the other hand, reflects its unique identity as a community-owned club focused on social impact. While both approaches have merit, Lewes FC’s valuation is less grounded in financial reality, especially given its struggles to attract significant sponsorship and investment. That is being diplomatic.
In the next blog, we’ll delve into the internal challenges at Lewes FC, the potential £1 million raised, and whether it can be used to secure and enhance the club’s future—or if it’s simply another cycle of short-term survival. Stay tuned.
The Rights of Fans. 