Seven-time Bundesliga champions, FC Schalke 04, have lurched from one crisis to another over the last five years as financial problems have crippled one of Germany’s most historic clubs.
With the financial results from the period January 1 to June 30 just released, the picture remains cloudy.
Despite having 178,000 members, making it the second-largest club in Germany and fourth-biggest in the world in terms of membership, cost-cutting and under-performing on the pitch has been the main theme of the club from the Ruhr.
For the first half of the year, Schalke’s revenue reached €74.3 million, compared to €168.3 million for the full previous year. This decreased revenue is due to the clubs’ continued absence from the top-flight of German football following a shock relegation in 2021, which resulted in rioting by the long-suffering supporters.
Christina Rühl-Hamers, Schalke’s CFO, will point to reduced total liabilities from €168.1 million to €162.7 million, with net financial debt also falling from €128.5 million to €114.7 million. The equity deficit increased though from €103.3 million to €104 million, which Rühl-Hamers noted as an ongoing focus: “Improving equity remains critical for us. Based on our current planning, we aim to meet equity improvement targets within the 2024 calendar year.”
Relegation, the Covid-19 pandemic, and the loss of their major sponsor, Russian energy company Gazprom, resulted in the workforce being cut resulting in savings close to €10 million.
“Streamlining our operations has allowed us to become more effective and adaptable, ensuring we’re equipped to handle future demands,” Rühl-Hamers stated.
Last year the club members voted to move the financial period from a July to June calendar year instead of January to December in a move to provide more transparency along with giving season, a clearer picture of the seasonal performance.
Despite languishing in the second tier, Schalke continues to pack out the atmospheric VELTINS-Arena, attracting an average attendance of 61,300 fans per match, making it the 14th best-supported team in Europe.
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