Schalke discusses plans with economic crisis

By: Porter | January 24th, 2009

Schalke board member Peter Peters responded publicly to the clubs approach in the world economic crisis:

Mr Peters, how prepared is Schalke 04 in these times of economic crisis?
We began our planning for the 2009 calendar year and the 2009/2010 Bundesliga season last year as a matter of routine. The results were presented to the supervisory board by the customary method in January. We came up with an amicable solution that also concerns personnel costs.

Which is?
We have to bear in mind that the global economic situation has become more difficult. In recent weeks we have been able to cut our personnel costs significantly, first by cancelling the contracts with Peter Lovenkrands and Ze Roberto. It’s important to note that we haven’t made any kind of severance payment in either case and in Ze Roberto’s case we benefited from a large and warranted fine. Second, we wish to emphasise that our contracts are very performance-related. Although it’s not something we would have wanted, of course, our points haul in the first half of the season and our elimination from European competition mean we have saved money.

To what extent can sponsorship revenues be planned for in an economic crisis?
The club’s income structure remains high. Our key sponsorship deals all run long-term: Adidas to 2018, Veltins to 2015, Gazprom and Victoria to 2012. Gazprom has also just reiterated that it intends to stand by the existing contracts in the course of the global economic crisis. The club thus put itself in an outstanding position at an early stage. In the hospitality area the attractiveness of the VELTINS Arena means we can continue to expect a high take-up – and in the spectator area we currently have 11,000 fans on the waiting list for a season ticket. There is no way we can satisfy that kind of demand.

What impact is the economic crisis having on transfers?
We always employ an appropriate cost management system. In doing so it’s important to operate in an unruffled way. But we won’t shy away from investing in good players we are convinced will improve us in footballing and business terms.

To what extent could a ’sporting advisory board’ play a role?
Well, that’s nothing new. In the past we have discussed key transfers with football experts behind the scenes. Together we will consider which of the existing procedures we will keep and which may need to be modified. Questioning and reviewing things is very positive and part of our everyday work. It’s not something we do with a view to changing things overnight. Quite the opposite in fact. We want to improve our procedures as part of an agreed process in a period when things are not getting any easier on the football market. We need to question all manner of things, not because we lack trust, but because we want to tackle our work with energy. Because such an approach is possible only if the people undertaking it have the necessary strength. And we on the managing and supervisory boards have that strength.






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