Schalke dismiss talk of financial trouble

23rd February 2005, Comments 0 comments

23 February 2005, GELSENKIRCHEN - German Bundesliga club Schalke 04 on Wednesday dismissed media speculation that they were facing financial ruin. "I do not lose any sleep over this issue. We will certainly not become another Dortmund and with regard to our club, this clever expert does not have know what he is talking about," Schalke manager Rudi Assauer told Bild newspaper. The financial magazine Focus on Money reported on Wednesday that Schalke estimates its operating losses for the 2004 business year w

23 February 2005

GELSENKIRCHEN - German Bundesliga club Schalke 04 on Wednesday dismissed media speculation that they were facing financial ruin.

"I do not lose any sleep over this issue. We will certainly not become another Dortmund and with regard to our club, this clever expert does not have know what he is talking about," Schalke manager Rudi Assauer told Bild newspaper.

The financial magazine Focus on Money reported on Wednesday that Schalke estimates its operating losses for the 2004 business year will come to EUR 17 million.

Total debts on 31 December stood at EUR 110 million on a turnover of EUR 94 million,  the report said quoting preliminary data.

Focus Money said Schalke's accounts for 2003 and 2004 had been inspected on its behalf by Professor Karlheinz Kueting of the Auditing Institute of Saarland University.

"I regard Schalke 04's financial situation to be even more catastrophic than Borussia Dortmund's," Kueting is quoted as saying.

Although Schalke's vice president Josef Schnusenberg confirmed the "hard facts" (EUR 110 million debts and loss for 2004), he said that the club's situation was not at all like that of Dortmund.

"Our situation cannot be compared to that of Dortmund. I am of the opinion that whenever one hears debts or losses, the reaction people have is panic."

Like Dortmund, Schalke from the neighbouring city of Gelsenkirchen are one of Germany's oldest clubs with a huge fan base. Both have invested heavily over the past few seasons in new players, making them overly dependent upon sporting success.

Borussia Dortmund, Germany's only publicly-listed football club, last week admitted it was on the brink of bankruptcy with record debts of EUR 67 million in fiscal 2004 and an operating loss of another EUR 27.2 million in the first half of this fiscal year.

DPA

Subject: German news

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