Schalke 04 break even and forecast profit

“Internally, we have always viewed things through a season-by-season perspective. Our sporting performances and financial results relate to the same timeframe, which is why this change makes perfect sense. We are not only creating more transparency, but will also be able to better compare and analyse our results in the future,” explained Christina Rühl-Hamers, board member for finance. 

Sales revenue during the abbreviated fiscal year totalled €74.3 million (2023 fiscal year: €168.3 million). This development is mainly due to the shortened reporting period; additionally, the 2023 fiscal year includes the second half of a season in the Bundesliga. Total liabilities were reduced from €168.1 million to €162.7 million. Additionally, net financial liabilities were reduced from €128.5 million to €114.7 million. 

The result is a nearly balanced consolidated result with a net loss of €0.6 million (2023 fiscal year: Consolidated net income of €6.9 million). “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. 

Accordingly, the deficit not covered by equity has increased slightly from €103.3 million to €104.0 million. “Negative equity continues to be one of our focal points. We are keeping an eye on this challenge,” said Rühl-Hamers. “Based on current planning, we expect to achieve the predicted improvement in equity during the 2024 calendar year.” 

Going forward, the aim is still to make a budget available that reflects the club’s sporting targets, and to increase the club’s financial stability. Following their relegation in 2020/21 and the COVID-19 pandemic, Schalke 04 have gone to considerable efforts to achieve this, including the implementation of widespread changes to the management structure. “We’re in a tough league and we have to contend with numerous other competitors. In order to achieve this, we need to manage not only our costs but also our structures and processes in the best way possible. Over the past four years, we’ve managed to structure ourselves so that we can adapt to any challenges, regardless of the league we’re in. That wasn’t the case after our relegation in 2021,” said Rühl-Hamers. “Now, we have about 200 employees working for the club’s management, more than 50 fewer than before the pandemic. An efficient structure has developed. Reducing the number of steps needed has allowed us to work together more effectively as we tackle the challenges ahead. We’ve also managed to reduce costs by around €10 million compared to before the COVID-19 pandemic. These are vital indicators of financial stability and competitiveness. I’d like to thank all our colleagues, who work hard for Schalke every day.”

Medium-term target remains a return to the Bundesliga

The Royal Blues’ medium-term target is a return to the Bundesliga, not least because the earnings from a share of the TV funds would have an enormous effect. Schalke’s earnings were around €77 million in 2020/21, but sat at just around €22 million in 2023/24 – and this is set to continue to trend downwards. “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,” said the 48-year-old.

With around 190,000 members and millions of supporters, S04 play a huge part in making the league attractive – and also in encouraging people to subscribe to TV partners, added Rühl-Hamers. TV viewing figures clearly show that “armchair viewers also want to watch these emotional and atmospheric matches. That’s why they tune in.” Home games at the VELTINS-Arena had an average attendance of 61,300 fans in the 2023/24 season – the third-highest in the country. According to UEFA, S04 sit 14th in terms of the total number of viewers, and are the only second-tier side in the top 16.

The report on the abbreviated fiscal year from 1st January 2024 to 30th June 2024 can be found online at schalke04.de (German-language only).