History repeats itself. And that’s what makes it so devastating from the perspective of everyone who still means well towards FC Schalke 04. Roughly summarized, it goes like this: The Bundesliga relegated team is traveling somewhere, accompanied by thousands of fans. The team tries hard, but then loses the thread and ends up getting tangled up in their own shortcomings. From a certain point on she seems paralyzed. Horror spreads across the stands. Then the game is over and the professionals brutally feel the unfiltered anger of their supporters.
In Berlin, where the Royal Blues were defeated 2:5 (2:3) on Sunday, beer cups then flew towards the professionals. Well over 10,000 Schalke supporters traveled to the capital – and were extremely angry afterwards. “I have to apologize to all the fans,” said coach Karel Geraerts: “To all those who traveled so far to see such a performance.”
Too often in justification mode: Schalke coach Karel Geraerts
Source: dpa
This wasn’t a premiere either. The Belgian, who succeeded Thomas Reis in October, had already publicly apologized several times for his players’ disastrous performances. The 42-year-old believed he had to do this after the 1:2 home defeat against Elversberg on November 11th and a week later after the 3:5 in Düsseldorf. Even after the turn of the year, after everything was supposed to get better, Geraerts couldn’t think of much else than to ask the supporters for leniency: after the 1:4 in Kaiserslautern, the 0:3 in Magdeburg and now again after the embarrassment against Hertha – their fourteenth defeat of the season and their fourth away defeat in a row.
Debacle without physical effort
The atmosphere that prevails around the traditional club is toxic. It is characterized by malice and mockery. There is talk of “downfall”. This puts additional pressure on you and doesn’t make it any easier to counteract the downward trend. Even experienced players like Simon Terodde (36) are now almost in danger of despair. Towards the end they “let themselves be slaughtered” in Berlin, said the striker. It was a “debacle”. “We defend as a team without bodies,” he explained: “Crazy.”
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For Schalke it’s about survival. The fourteenth place in the table is just three points ahead of a direct relegation zone with only eight games left. Nobody can imagine what another relegation to the third league would mean. But it doesn’t help. Schalke, which started the season with the clear goal of promotion, has to deal with this horror scenario – and does so as best as it can.
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Last week the documents for a license were submitted for the coming season, including for the third division. “As far as the third league plans are concerned, we expect that the provisional license will only be granted under certain conditions,” said CFO Christina Rühl-Hamers. This is put as optimistically as possible. In fact, we can only speculate as to whether there will be any prospects at all or whether bankruptcy and possibly a demotion to the fourth-tier regional league would be inevitable.
Schalke’s Paul Seguin (left, in a duel with Wiesbaden’s Bjarke Jacobsen) and his colleagues have to overcome some turbulence
Source: dpa
The fact is: Schalke, which has net liabilities of 128.5 million euros, would continue to have to pay around 16 million euros in interest repayments annually. A sum that is higher than the total budget of some league competitors.
At the same time, the club would still have to manage considerable costs. Personnel expenses amounted to 73 million euros in the 2023 financial year, of which 64 million euros were salaries, which is strikingly high in relation to other second division clubs. In the third league, however, significant income would be lost.
The donations from TV marketing alone would shrink from the current 19.5 million euros to 1.3 million euros. It is no coincidence that Schalke’s annual report concludes with the following statement: “These events and circumstances show (the possibility of liquidity gaps in the event of relegation, ed.)that there is a material uncertainty that may raise significant doubts about the association’s ability to continue as a going concern.” We are talking about a “risk that threatens the continued existence of the company.”
This forecast increases the pressure on the team and coach to finally bring about a turnaround. If this does not succeed – all efforts towards economic consolidation would have been in vain. Then it wouldn’t be of much use to be in the black again in 2023 for the first time in five years. Schalke was able to record a profit of 6.9 million euros – despite being relegated from the First League. It was possible to “improve important economic parameters,” said Rühl-Hamers. The debts were also reduced by a good eleven million euros. Nevertheless, the situation remains tense – even if they manage to stay in the class.
No debate about the coach
With a view to the upcoming second division season, Rühl-Hamers expects a license without any requirements or conditions. Nevertheless, there could also be a risk of loss of income in this scenario. Due to the current poor table situation, less television money can be expected, and several sponsorship contracts are expiring. Schalke is again looking for a new jersey advertising partner. If the team budget is to be around 25 million euros in the coming second division season, as calculated, it could be difficult to reduce the negative equity (currently 103.3 million euros) by five percent, as prescribed by the German Football League (DFL). .
Sporting successes are urgently needed – and they must be achieved with Karel Geraerts, possibly as a result of the economic problems. Another change of coach would bring with it further financial burdens. “There is no coaching discussion at all. I rely on continuity, that’s the best thing for the club,” said new sports director Marc Wilmots. The coach should also not be held responsible for individual mistakes made by players. The fact is, however, that Geraerts has not yet succeeded in allaying the players’ fear of making mistakes.
Karlsruher SC will be at home on Easter Sunday. The Baden team is something like the team of the moment in the second division. Last weekend they swept 1. FC Magdeburg 7-0. The pressure on Schalke is enormous – once again.