Schalke 04 Averts Point Deduction By Improving Finances

In a significant turnaround for Schalke 04, the club has successfully improved its equity ratio by the necessary five percent, effectively averting a possible point deduction for the upcoming 2025/2026 season. This achievement comes amid ongoing financial challenges and is a notable milestone in the club's efforts to stabilize its finances.

Over the course of the year 2024, Schalke managed to reduce its negative equity from €103.3 million to €98.1 million, marking a critical step towards financial recovery. As explained by Christina Rühl-Hamers, the club's financial chief, this success was not solely based on sports performance but also relied heavily on exceptional events held in the Veltins-Arena and notable transfer revenues.

Rühl-Hamers remarked, “We have achieved this – among other things, through an extraordinary concert year at the Veltins-Arena as well as significant transfer income for a 2. Bundesliga club.” The club's transfer income was significantly bolstered by the sale of 18-year-old Assan Ouédraogo, who transferred to RB Leipzig for €10 million before the season. Moreover, the impact of high-profile concerts, particularly Taylor Swift's performance during her 'The Eras Tour' in July 2024, played a substantial role in financial consolidation.

While this progress is commendable, Schalke's financial landscape remains precarious. The club is still grappling with low television revenues from the second Bundesliga and is expected to incur annual interest payments of around €16 million. This creates a challenging environment for further improvements to their financial health, necessitating either consistent sporting success or more transfer profits to manage their obligations effectively.

As of March 21, 2025, Schalke has successfully maintained a ten-point cushion over the relegation zone, which should be enough to steer clear of a catastrophic drop to the third division. However, the path ahead is expected to be challenging, noted Rühl-Hamers, as the club works towards sustainable financial stability amidst unwavering competition.

Moreover, the club's publications reveal a consolidated profit of €6.6 million for the first half of the 2024/2025 season, a striking contrast to a loss of €2.4 million in the prior year. The ongoing efforts to reduce the negative equity have garnered positive results, demonstrating the club’s resilience despite the daunting financial backdrop.

While the current profitability marked a notable gain, Rühl-Hamers emphasized that the achieved financial robust footing is not yet secure. The team’s budget for the squad and staff continues to exceed €20 million for the current season. The financial chief aptly summarized the situation stating, “This is a marathon and not a sprint; we can only improve negative equity through positive results.” Yet, with all the pressure to improve financial standing, the club remains committed to pushing for promotion back to the Bundesliga.

In light of ongoing challenges, Schalke established the Auf Schalke eG cooperative society in early 2025, aimed at enhancing long-term financial stability. So far, this initiative has accrued about €7 million, but Rühl-Hamers insists a larger capital injection of around €50 million would be necessary to see significant impact.

As Schalke’s financial stability hinges on a precarious balance of concert revenues and transfer sales, the pressure mounts to identify new income sources. Rühl-Hamers noted the recent decline in sponsorships, media rights, and merchandising revenues, adding to the club's financial headache. While the club must continue to manage its liabilities, including debts incurred from the pandemic, the expectation remains firmly fixed on returning to the top tier of German football. “Our aim is clear,” Rühl-Hamers concluded, “we strive for a permanent return to the Bundesliga and the board is fully convinced of achieving sustainable promotion in the medium term.”