Home Business FC Schalke 04 back in the Bundesliga thanks to a loan? The...

FC Schalke 04 back in the Bundesliga thanks to a loan? The past season has hurt FC Schalke 04 – both athletically and financially. In order to at least quickly get better economically, the club lures its fans with a bond. By Victor Gojdka.

4
0

Empty grandstand in the stadium of FC Schalke 04 | dpa

FC Schalke 04 Back to the Bundesliga thanks to the loan?

Status: 14.06.2021 5:27 p.m.

The past season has hurt FC Schalke 04 – both athletically and financially. In order to at least quickly get better economically, the club lures its fans with a bond. From Victor Gojdka, ARD stock exchange studio Perhaps the banner on the Internet already says it all: “Glück auf” is what it says if you want to buy the bond from Schalke 04. Schalke promise their investors exactly 5.75 percent interest. In view of the zero interest on the account, that looks lush. But football fan and stock market expert Alexander Langhorst from GSC Research says: Better look twice. “In the end, the money is needed here to repay old debts,” he explains. “You can’t buy players with the money, it’s only used to pay off the old bondholders. And that’s always a sign that you should be careful.” Because if a bond company goes bankrupt, investors’ money may be gone.

Mehmet-Can Aydin from Schalke 04 | EPA April 20, 2021

Bundesliga out Schalke 04 is relegated With a defeat against Bielefeld, Schalke 04 can no longer keep up.

The gang in League 2 hits the office

And the finances of the Royal Blues are anything but royal: they made a loss of 52 million euros in the past financial year. Overall, the Schalke push a mountain of debt of 217 million euros in front of them – and now they are relegated to the second division. A disgrace – in terms of football and finance, says sports economist Daniel Weimar, who did research at the University of Duisburg-Essen: “These are high losses on all channels of revenue generation – sponsorship money, especially in TV marketing. So it is at all levels It is to be expected that the level of the first division cannot be maintained. ” Many football clubs get into a vicious circle after relegation: less income, less money for top players, poorer performance. Not a coincidence that recently too Werder Bremen borrowed money from the fans. This club has also been relegated to the second division. This is very typical of football bonds, says sports economist Weimar: “You can see that in the names when you go through the fan bonds: Hansa Rostock, MSV Duisburg, Arminia Bielefeld – we don’t find Borussia Dortmund here, we don’t find Bayern Munich here . ”

SV Werder Bremen players are happy after the goal to make it 1-0 against Bielefeld. | dpa 05/17/2021

Soccer bonds Investment only for real fans? Werder Bremen is issuing a bond in which private investors can also invest as of today.

Would you rather have a season ticket than a fan loan?

That alone is an indication, says Weimar: “These are the clubs that no longer have adequate access to the normal capital market.” Means: The banks often no longer give the clubs millions. Or only at extreme interest rates. Schalke is now offering almost six percent interest to private investors who are supposed to invest in the bond. At the bank, experts speculate, the association would have to pay twice as much to get fresh money. So would you rather go to the betting shop or buy the bond? Stock exchange expert Alexander Langhorst from GSC Research has a clear opinion: “Perhaps you should consider whether you should leave both of them. Or you can buy the S04 season ticket. The joy you get from it is the greatest.” The Ruhr Area Association Schalke 04 is historically dependent on coal. But whether investors end up making coal with their bonds or burning them? That, experts say, is pretty unclear.