Schalke Club is in danger of becoming one of the first clubs in Europe’s top five leagues to declare bankruptcy due to the impact of the global pandemic. The German team is even begging fans not to demand back their tickets to live “through the days”.
Schalke at risk of bankruptcy
For clubs that were already financially ill, the global pandemic was like a fatal blow to bankruptcy. Schalke Club is one of the teams facing this danger.
As you know, Schalke Club has been in decline in recent years. Even last season, they only escaped the relegation disaster in the final rounds in the Bundesliga. By this season, the Blue Emperor has improved his achievement, while ranked 6th on the standings. However, that is only the appearance of the problem. In fact, Schalke is in a downturn when only draws and loses in the last 7 Bundesliga rounds.
What is more worrying is that the board of directors Schalke made a big gamble earlier this season, when it was full and borrowed to upgrade the squad. Specifically, they spent nearly 30 million euros on the purchase of new recruits. This is a lot of money compared to Schalke’s difficult financial situation at the beginning of this season. Specifically, they already had a debt of approximately 200 million euros. Schalke hopes that this investment will help them regain their field record, thereby reviving the club in all aspects. In fact, just to attend the Champions League next season, Schalke will solve all problems and live quite leisurely.
However, people count not by heaven. The global pandemic occurred and put Schalke Club in a very dangerous situation. The losses caused by this pandemic make even the financially and steadfast teams on the pitch reeling, not to mention a club in crisis, and at the same time both pitching and borrowing for an all-out investment like Schalke.
Market manager Alexander Jobst of Schalke has just admitted: “The club is in critical condition. Schalke’s viability is being challenged. ” According to observers in Germany, Schalke will go bankrupt and be wiped out, if no investor can be found to rescue the club. Everyone knows that it is difficult for any investor to dare to jump into the football field at this time, even in the next few years. Simply, football will still take a lot of time to recover, especially with already-poor clubs like Schalke.
Schalke Club currently has to temporarily pray for the mercy of the fans and his own players. They are asking supporters not to demand a refund for season tickets, as well as asking players to reduce their salary or even not receive wages this season. However, this is only a short-term solution to help Schalke Club live “through the days and months”. Because they are carrying large debts on their shoulders, and do not know what revenue to pay for.
Schalke’s leadership has announced the postponement of the annual general meeting scheduled to take place in June and has not announced the time of reorganization. Simply, it may not mean anything to Schalke Club. The most talked-about problem at the traditional rich German club at this time is finding a solution to save the club from the risk of bankruptcy or even being wiped out!
Schalke suffered heavy losses in 2019
Schalke Club has already lost 26.1 million euros in fiscal 2019. Surely this number will be much larger, even increasing exponentially, by 2020 due to the effects of the pandemic. Moreover, they also spent a lot of money on new recruits earlier this season, most notably defender Ozan Kabak (pictured) costing 15 million euros.
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