Schalke 04 have released their financial figures for 2024.
The Royal Blues currently sit just outside the relegation places in the 2. Bundesliga as they struggle to compete in a league with many big clubs with a brighter financial output. S04 have faced financial hardship since covid and are still tackling a massive debut which has since affected their abilities to compete on the pitch.
It’s worth mentioning that the figures Schalke have published are just from January 1st until July 30th 2024. This is because of an amendment made at the club’s last annual general meeting last year meaning the S04’s fiscal year will now run from 1st July to 30th June of the following calendar year.
This means that drawing direct comparisons from last year’s figures will require this foresight.
Key Figures
Schalke 04’s negative equity has increased slightly from €103.3m to €104m. Christina Rühl-Hamers, board member for finance for S04 explains:
“Negative equity continues to be one of our focal points. We are keeping an eye on this challenge. Based on current planning, we expect to achieve the predicted improvement in equity during the 2024 calendar year.”
For fans of the club, it’ll come as no surprise that Schalke remain in debt and the slight increase may cause concern. Although this is only for half of year, S04 will have to be conservative when it comes to transfer budgets and wages for the foreseeable future.
Schalke have had to be frugal with the club’s overall finances both on and off the pitch. The club are currently operating with 50 less members of staff as a result. This approach has resulted in a net loss of €600k.
“This half-year was impacted by several influences, including the restructuring of our sporting set-up, without which the results would have been positive. In addition, the second half of the season is often somewhat weaker in terms of revenue than the first half, which is heavily influenced by the summer transfer window and the start of the season,” said Rühl-Hamers.
Medium-term Target
Schalke’s medium-term target remains to return to the Bundesliga. Not just for sporting reasons but for the huge financial gain being in the league brings mainly through TV funds.
S04’s earnings were roughly €77m in 2020/21 but sat at around just €22m in 2023/24.
As one of Germany’s most-supported clubs, S04 believe that the distribution of TV funding is unfair. They argue that the club is one of the big attractions in the 2. Bundesliga whilst pointing out their average attendance last season was 61,300.
“Earnings from TV rights are a crucial aspect of our planning. Sadly, the value of the best-supported clubs to German football is hardly considered in the current distribution system. We believe that has to change as soon as possible.”
Conclusions
For fans, Schalke’s reports indicate that the club will face financial difficulties in the future and will be working on a smaller budget than other clubs in the league such as Hamburg, FC Koln, Hertha Berlin, and so on.
The January transfer window could be quiet for S04 in terms of incomings but outgoings may occur for the right price. For example, it’s not ruled out that top goalscorer Moussa Sylla could be sold this winter after just six months at the club.
Purchased for €2.5m last summer from FC Pau, the forward is being monitored by top teams in Italy and should Schalke receive a fee of upwards of €10m, it could be hard to ignore.
For this season, Schalke’s main goals is staying competitive in the league and ensuring that they don’t get dragged into a relegation scare.
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