As actors Rob McElhenney and Ryan Reynolds sought a minority investor in Wrexham AFC and the surrounding community in Wales, J.P. Morgan had a suggestion.Ìý
The Allyn family in Skaneateles.Ìý
That connection was a product of the work by Eric Allyn, who serves as chief investment officer of the family office, and his daughter, Kaleen. The duo has developed a financial network on behalf of their family since the sale of Welch Allyn, the medical device manufacturing company, in 2015.Ìý
"For 100 years, we owned this business. We loved the business. It was in our blood, and it was our identity," Eric told 69´«Ã½ in a phone interview. "It was a passion and it was terrible to sell the business. People go, 'You got so much money though!' That's such a shallow understanding of our family's feelings for owning the business. It really was our identity."Â
After Hill-Rom acquired Welch Allyn for $2.05 billion, the Allyns' job was to invest the proceeds. The family office, 50 State LLC, was established to make those investments and "create connections for our family," Kaleen said.Ìý
The Allyns have invested in private companies, but they were also searching for an opportunity that would benefit a community — a way to rebound from the identity loss associated with the sale of their family's company.Ìý
Meanwhile, McElhenney and Reynolds are looking to build on their purchase of Wrexham AFC, a Welsh soccer club, in 2020. The actors' ownership of the team has been featured in the Emmy Award-winning docuseries, "Welcome to Wrexham."Â
"When you talk about Rob and Ryan, they have these vast networks," Kaleen said. "They really went out to try and seek a partner that was beyond your typical investor. They could go to big sovereign wealth funds or private equities or hedge funds, but what they were really looking for is someone who had operated a business and also knew how to invest in a community."Â
One of the Allyns' most trusted partners is J.P. Morgan. The firm learned earlier this year that McElhenney and Reynolds were searching for partners and mentioned the Skaneateles family.Ìý
"We were the first name that came out of J.P. Morgan's mouth," Eric said.Ìý
When discussions began about a potential partnership, Eric was out of the country. He didn't know a lot about Wrexham, but heard about the docuseries. He stayed up all night to watch the first season before talking to the team representing McElhenney and Reynolds.Ìý
Weeks later, Eric traveled to Wales. The goal of the trip was to visit Wrexham and "see whether or not this was just a Hollywood tale," he said. What he found is a place that reminded him of upstate New York.Ìý
"You think of Micron coming to Syracuse and the opportunity that presents is quite similar to what Ryan and Rob have done in Wrexham," he said. "It's like a classic underdog story and who doesn't love a great underdog story?"Â
Numerous meetings followed and the Allyns developed a great relationship with McElhenney and Reynolds, Kaleen Allyn said. They decided to co-found Red Dragon Ventures, an entity that will invest in Wrexham AFC and the community.
The official announcement was on Oct. 30, when Wrexham AFC welcomed the Allyns as minority investors and revealed the creation of Red Dragon Ventures.Ìý
"Wrexham has earned the world's attention and we are focused on bringing on board world-class partners to help with the next phase of our growth," McElhenney and Reynolds said in a joint statement. "We have been fortunate to get to know the Allyn family and we are blown away by their intelligence, kindness and commitment. They are exactly the type of partners we will need for this amazing endeavor."Â
Red Dragon Ventures aims to address the needs in Wrexham due to the popularity of the soccer club. When McElhenney and Reynolds bought Wrexham AFC, the team was in the National League — the fifth level of the English football pyramid. It has won promotions in two consecutive seasons and now plays in EFL League One, the third level of the system.Ìý
Before McElhenney and Reynolds took ownership of the club, average attendance was 4,058. It's now up to 13,158. (Wrexham AFC's stadium, the SToK Racecourse, has a capacity of 13,341.)Â
"Their demand is 10 times their supply and it's not just in the club itself, which does need some new stands and needs some real investment, but also hotels, restaurants, infrastructure, bars and other businesses," Eric said.Ìý
The first investment by Red Dragon Ventures was to acquire 80% of Wrexham Lager, a family-owned local brewery. The brewery was founded by German immigrants in 1881 and its beer was served on the Titanic.Ìý
By investing in Wrexham Lager, the Allyns hope to expand the brewery's supply chain. It also establishes a connection with another family-owned enterprise.Ìý
"It was great getting to know this family and the company that they've built with our background in Welch Allyn," Kaleen said.Ìý
Prior to Wrexham AFC's resurgence, Eric noted there wasn't a lot of investment in Wrexham. It's a place, he said, that is "needing some love."Â
For the Allyns, their work in Wrexham is a long-term project. Along with being minority owners of Wrexham AFC and acquiring Wrexham Lager, there are also plans for a real estate project and building out areas around the stadium.
"The idea of Red Dragon Ventures is really to invest in both Wrexham AFC, but also the businesses and real estate in the Wrexham community to ensure that the success of Wrexham AFC isn't isolated to the club," Kaleen said.Ìý