The First German Football Club to Enter Esports, Schalke 04, Selling Its License
Schalke 04, longtime members of the Legends European Championship (LEC), the strongest League of Legends tournament in the Old Continent, are considering selling their place in it.
The famous football club from Germany joined the eSports universe a little more than 5 years ago, and acquired the license two years later, which makes it one of the oldest members and partners of the LEC, the most attractive League of Legends in Europe. The LoL is probably the most developed eSports in the world, and its largest leagues operate according to the franchise system that is already developed in traditional sports in the United States, such as the NBA, NHL, etc.
The Results of the Football Club Affect the Fate of the Esports Club
As in the German football Bundesliga, so in LEC, Schalke cannot boast of good form. With the departure of the best player Upset, who moved to Fnatic, there was an evident decline in form, which is why they are considering selling their place, the value of which is an incredible 24.3 million US dollars.
Given that the football club is in a catastrophic form due to which it is in danger of being relegated from the elite rank, its financial power has significantly decreased, which is why its officials believe that a sale is a necessary option. The budget of the football club is around 80 million euros and it will have to be cut in half in case Schalke 04 loses the status of the Bundesliga member. Since the football sector is still the main focus of the management of the club from Gelsenkirchen, the money it spends on eSports could help it a lot in trying to improve the situation in which it found itself.
The Club Responded to the Rumors, but Without Excessive Optimism
Schalke 04 have now responded to the rumors and neither confirmed nor denied it. In a note on social media, they stated that since the club may be relegated to the 2nd Bundesliga and because it is uncertain when the fans will be able to return to the stadium, they have to examine all options in order to receive additional funding. The various options are currently being weighed up, including the possible sale of the LEC seat. However, a decision on this has not yet been made because, according to the statement, the relegation of the football team will not automatically mean the end of Schalke 04’s team in the LEC of the League of Legends on whose matches you can bet at numerous eSports betting sites. However, strengthening the core business of football is the primary task of the officials.
What goes in the favor of withdrawal of Schalke 04 is that their eSports club is not yet profitable even in its third year in the LEC. The maintenance costs of the team and participating in the LoL top division are not covered by sales in the league. Even some other organizations in the LEC lose hundreds of thousands of euros every year.
By selling the eSports team, not only would Schalke 04 make a profit but they would also save all the money needed to run an eSports team, as well as an additional $ 9 million, which is how much the LEC registration fee costs. Although it would be a great pity for the best European LoL to be left without a participant like Schalke 04, it is known how difficult it is to get a place in LEC nowadays, and it is quite certain that a large number of interested buyers of their license will soon be found.