Featured image credit: Schalke 04
Schalke 04 has launched a cooperative venture which, as a first priority, intends to shore up the 2. Bundesliga club’s financial situation as well as offer control of Veltins Arena.
Schalke, traditionally one of German football’s most popular clubs, was relegated from the Bundesliga in 2022-23 and has since seen its debts rise to a reported figure of more than €162m (£136.9m/$169m).
With this in mind, the Gelsenkirchen club has today (Wednesday) opened up Auf Schalke eG, with members, fans and companies able to join the cooperative and thereby support the club in actively and independently shaping its future.
Schalke has engaged Genoverband, a specialist in servicing cooperatives, to aid the venture, to which an initial 190,400 shares are being issued, roughly equivalent to the club’s membership base.
Depending on the amount of capital generated from the subscription, Auf Schalke will acquire Veltins Arena shares from FC Gelsenkirchen-Schalke 04 eV, essentially making the cooperative the stadium owner.
At the same time, the additional financial resources will give the club the opportunity to buy back stadium shares held by third parties – for example, the City of Gelsenkirchen – depending on the amount of money raised.
A share in Auf Schalke costs €250 for individuals and legal entities. There is also a one-off joining fee of €75, or €500 for legal entities. Schalke members can participate in the cooperative by purchasing one share, with the threshold rising to 40 shares for legal entities or institutions.
Matthias Tillmann, chairman of the board of Schalke 04 and honorary chairman of the cooperative, said today: “If we join forces, we will lead Schalke to new strength. The club must be able to invest in infrastructure, in innovation and of course in sport in order to prove itself in competition.
“With Auf Schalke eG, we have found a form of company that suits our club perfectly. If everyone participates within the scope of their possibilities and subscribes to shares, Schalke can shape today and tomorrow independently and successfully – we are convinced of that.”
Schalke has deemed the scheme the most important business project it has conducted in over 20 years, and the venture is part of a growing trend in German football. Bundesliga club St. Pauli in November set out plans for its fans and members to own Millerntor-Stadion through the launch of a cooperative dubbed the first of its kind in world football.
St. Pauli currently owns the stadium, but the Hamburg-based club is hoping that the cooperative scheme will raise as much as €30m, allowing for the purchase of a majority stake in the Millerntor.
Meanwhile, fellow Bundesliga club Union Berlin in October upgraded its redevelopment plans for the Stadion An der Alten Försterei, along with detailing a new capital increase scheme that could raise up to €60m for the project.
Sven Kirstein, a member of Schalke’s supervisory board, said: “I hope that we start a movement right from the start and become the cooperative with the most members in Germany.
“Our club has enormous potential, with over 190,000 members and many more fans who can become part of this initiative. The more capital we raise, the bigger the step forward for Schalke. It’s about showing that Schalke is something special – both on the pitch and in society. In order to achieve this, we have to convince as many people as possible to get involved.”
A fixed target has not been set for revenue generation through the scheme. Commenting on how the funds will be used, Kirstein said: “The first step will be the purchase of shares in our Veltins Arena by the cooperative.
“With the funds that the club would receive from the sale, the association would pay off liabilities, such as the Corona loan. We can also buy back additional stadium shares that are currently in the hands of third parties.
“This saves the club interest, as it does not have to make the repayments from its operating business and thus has more financial leeway. The cooperative receives a stable basis from the rental income and can even pay out a small dividend in the long term – this is ultimately decided by the members of the cooperative.
“Depending on the capital investment, we can also implement other projects in the future, such as the youth performance centre or a new fan centre.”
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