Record turnover helps Schalke reduce debt

Schalke reduce debt

Eurosport

The Bundesliga giants, whose large debt is an unusual phenomenon in German football, had an overall debt of nearly 194m euros at the end of 2010 but it was reduced by 30.88m euros between January 1 and December 31 2011, now standing at 163.75m euros.

The significant reduction came about after a 2010-11 season in which the Gelsenkirchen-based club won the German Cup and reached the semi-finals of the Champions League.

This led to a club-record turnover of 199.8m, a 30.3m increase on the previous year’s turnover: after running costs, staff wages and debt repayments, the club declared a net profit of 5.57m euros, almost five times that of the previous year.

"The main goal of our economic plan in the coming years is the financial consolidation of FC Schalke 04," the club’s chief financial officer Peter Peters said after accounts were submitted to the German FA.

"The priority is now a substantial reduction in staff costs (which totalled 94.6m for the 2011 fiscal year).

"Because of the duration and content of contractual arrangements in recent years, this is a process which will take some time. It may mean that the economic results in the coming year (2012) are not so positive as for 2011."

Schalke lie fourth in the Bundesliga, occupying the final Champions League qualification slot after Germany's allocation was increased from three places from next season.

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