'It would be madness' - Wrexham boss Phil Parkinson makes key admission after Ryan Reynolds and Rob McElhenney's side are beaten by Tom Brady's Birmingham in crunch clash

While Birmingham, bolstered by Brady’s investment, made waves this summer by breaking records with a £20 million ($26 million) transfer expenditure, Wrexham chose to be more pragmatic. Their biggest signing of the summer, Mo Faal from West Brom, cost £500,000, a significant investment for the Red Dragons but a fraction of Birmingham’s outlay on Jay Stansfield (£10m) from Fulham.

Parkinson was clear that trying to compete financially with Birmingham would be an impossible task. "No one can compete in this division with Birmingham. It would be madness for us," he said.

"We are on a journey as a club, and we are trying to build a sustainable football club and it would be absolute madness to say we could compete with Birmingham's spending, it is just impossible.

"They have spent more than any other club outside the Premier League but if I was in their position with those resources available, you'd get the best possible players you can and that's what they've done."

Birmingham made the most of their firepower and beat Wrexham in the 'Hollywood Derby' last Monday to end their unbeaten run. However, Parkinson’s message to his team was clear as he pointed out that Wrexham had enjoyed an excellent start to the season and that one loss, especially against a well-funded and in-form Birmingham side, should not detract from their progress.

"Credit to them, we will take the defeat on the chin," said Parkinson.

"After the way we started the season, you felt we were in a really good place going into the game and it looked like that when we scored but once they got the first goal they grew in confidence. We won't get too carried away with this defeat and I don't think we should get too carried away with Birmingham. It was a good performance from them and they are unbeaten at the start of the season but there's a lot of football to be played."

Despite the defeat, Wrexham sit atop on League One standings on goal difference, having collected 13 points from their first six games. They will return to action against Crawley Town on Saturday afternoon in their league fixture.