Fan-based funding for debt-saddled Schalke 04



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Schalke 04 asks fans to buy in at Veltins Arena Image: Arena AufSchalke, Wo st 01, CC BY-SA 3.0 de

The 2. Bundesliga team FC Schalke 04 is in the financial soup and to tackle its fiscal challenges and secure ownership of its home facility – the Veltins-Arena in Gelsenkirchen, North Rhine-Westphalia, Germany – the club has launched a new initiative.

‘FOOTBALL BUSINESS JOURNAL’ stated that the Schalke 04 has launched a cooperative venture Auf Schalke eG which allows the fans, members and businesses to buy shares for €250 each with a one-time joining fee of €75 (€500 for businesses). Each participant gets one vote regardless of the number of shares owned.

The club burdened with over €162m in debt after relegation from the Bundesliga (the top of the German football league system) in 2022-2023 aims to use the funds to buy back the stadium shares from the third parties including the City of Gelsenkirchen. Partnering with the cooperative experts Genoverband Schalke has issued 190,400 shares matching its membership base. Just three days after its launch on January 22nd the initiative has already raised approximately €3.5m from over 4,000 participants.

The FC Schalke 04, commonly known as Schalke 04, is a professional sports club from the Schalke district of Gelsenkirchen, North Rhine-Westphalia (Germany). It is best known for its football team which plays in the 2. Bundesliga, the second tier of the German football league system, following relegation from the Bundesliga in 2022-2023.

The Veltins-Arena is a retractable roof-and-pitch football stadium in Gelsenkirchen, North Rhine-Westphalia, Germany. It opened on August 13th, 2001 as the new home ground for the FC Schalke 04. The stadium has a capacity of 62,271 (standing and seated) for league matches and 54,740 (seated-only) for international matches.
 

Auf Schalke eG Purpose

‘FOOTBALL BUSINESS JOURNAL’ further stated that the cooperative aims to tackle Schalke 04’s pressing financial issues including the significant debt levels. In 2023, the club allocated €16 million to service its debts limiting resources for other strategic areas. Instead of relying on the external investors the Auf Schalke eG seeks to mobilize financial support directly from the fans, the club members and the businesses.
 

Membership and Funding

Membership in the cooperative is open to Schalke 04’s approximately 190,000 members as well as businesses and organizations. Members can purchase shares priced at €250 each with an additional one-time entry fee of €75 for the individuals and €500 for the legal entities. Each member, regardless of the number of shares held, is entitled to one vote ensuring equal representation.

The funds raised through the cooperative are intended to reduce the club’s debt and support the long-term financial planning without dependence on profit-focused external parties. This structure reflects Schalke 04’s commitment to solidarity and its tradition as a membership-based club.
 

Financial Buffer

By establishing Auf Schalke eG, the FC Schalke 04 is creating a financial buffer that allows the club to address its debts while preserving its identity as a member-driven organization. This cooperative approach aligns with the club’s ethos and offers a sustainable alternative to the growing trend of external commercialization in football. The project’s success could inspire other clubs facing similar challenges to explore fan-based funding solutions that maintain autonomy and foster community engagement.

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