The FC Schalke 04 withdraws from the highest European “League of Legends” league LEC. It marks the end of a traditional sports club’s largest ever esports commitment.
Financially, the decision in favor of the club is worthwhile: The club will receive 26.5 million euros for the franchise license. Claudio Kasper, managing director of the esports department, cites the reasons for the decision: »the economic effects of the corona pandemic and that Failure to achieve the sporting goals in the core business«.
The sporting downturn that has lasted for years has the club economically added. The relegation is now another cut that forces the club to take new measures. Schalke need money. And when the going gets tough, in Gelsenkirchen in the end it is football that counts.
“Exemplary example” for sports clubs
As Schalke Started esports in 2016, the world at Schalke was completely different. The club was one of the top clubs in the Bundesliga and was consistently represented internationally. The view was ahead, and Schalke wanted to become the esports pioneer.
In addition to classic football simulations, the club had its own “League of Legends” team ventured much further into the scene than the national and international competition. With his “League of Legends” department he played directly in the top European league and in 2018 acquired a starting place for the newly founded LEC franchise league for a good eight million euros. The value of this license has now more than tripled.
Tim Reichert, previously responsible for the strategic direction of FC Schalke 04 Esports, called the commitment in a statement “very successful, not only financially in the end, but for the club and the Schalke 04 brand”. Schalke is a “prime example” for sports clubs of how to expand your business and address a young target group.
Not only in the esports department itself is the club’s commitment seen as a success. “From an economic point of view, esports is one of our business areas with the greatest growth,” said Alexander Jobst, Head of Marketing, Sales and Organization at FC Schalke 04. “The fact that it now pays a considerable amount into the core business of the S04 is of enormous importance for us.”
No immediate end
For the “League of Legends” department, however, the decision does not mean the immediate end of the game. The team is currently competing in the Summer Split of the LEC, the back series of the season, and will also end the current season regularly. In terms of sport, however, things are not going well, the team is second to last.
In the past, the club had always dealt with difficult phases in this area with unshakable confidence in its project. After the team had already been relegated in the premiere season, the club stuck to its commitment and rose again in 2018.
The descent of the footballers, however, had completely different effects and had caused speculation about the future of the “League of Legends” team for weeks, also fueled by the departure of the biggest star Felix “Abbedagge” Braun.
From the 2022 season, the esport organization Team BDS will take over the starting place for the Royal Blues. The Swiss are already active in various disciplines such as “Rainbow Six Siege” and “Rocket League”. With the “League of Legends” team, BDS is currently still represented in the top French league, the LFL.
Certainties and uncertainties
It remains to be seen whether BDS will take over the Schalke “League of Legends” professionals in the new squad, as has often happened with similar processes in the past. The future also seems uncertain for the other esporters in the club.
Reichert, who will be leaving the club, calls the club’s decision a “significant cut” and expects the club to position itself “less international, more nationally” in this area. Schalke is also represented in “League of Legends” with a team in the Prime League, the highest league in German-speaking countries. The club is also active in the disciplines “Fifa” and “Pro Evolution Soccer”.
The Schalke retreat creates uncertainties and certainties in the scene alike. On the one hand, it sends a signal to the world of sports that the most ambitious and visible commitment of a traditional sports club to date has ended. The coming years will show what conclusions will be drawn there.
The proceeds that Schalke achieved through its commitment could point the way. Almost two years ago, a franchise slot in its North American counterpart, the LCS, was sold for a similar amount. In Europe It had long been speculated what a starting place in its own league was worth and how the prices had developed since the league started in early 2019. At least here there is now clarity.
