Schalke Secures Interim Sponsorship Deal with Vivawest Following Gazprom Departure
In a swift response to the termination of its sponsorship agreement with Gazprom, Schalke 04 has secured a new interim sponsor: Vivawest. The housing group is poised to be unveiled as the Bundesliga club’s new main sponsor this weekend, with negotiations reportedly nearing completion.
This rapid turnaround is fueled by a pre-existing connection between Schalke and Vivawest’s parent company, the RAG Foundation. The multi-billion dollar foundation, which holds a 40% stake in Vivawest, is headed by Bernd Tönjes, a known Schalke enthusiast. This existing relationship likely played a crucial role in facilitating the swift agreement.
A Long-Term Partnership in the Making?
Schalke’s pursuit of a new main sponsor has been ongoing for some time, with discussions between the club and the RAG Foundation reportedly taking place for several months.
The RAG foundation’s potential involvement extends beyond mere sponsorship. Sources suggest the foundation was being considered as a major shareholder in a proposed spin-off of Schalke’s professional department, a plan previously championed by former supervisory board chairman Clemens Tönnies and ex-board member Alexander Jobst. This strategic move could have helped secure the necessary 75% approval from club members.
Furthermore, Schalke’s head of finance, Christina Rühl-Hamers, has reportedly explored the possibility of leveraging the RAG Foundation’s support to restructure the club’s €35 million Corona loan, which is currently backed by a state guarantee.
The club’s significant debt burden, estimated at €237 million, has been a major concern.To alleviate this,Schalke reportedly offered the catering rights at their arena as collateral to the RAG Foundation.
Vivawest: A Bridge to Financial stability
While the details of the vivawest sponsorship agreement remain confidential, club insiders suggest the real estate group will act as a transitional sponsor, providing €4 to €5 million annually. This figure falls short of the €9 million annual sponsorship provided by Gazprom, highlighting the financial challenges Schalke faces.
The club must now prioritize correcting its license applications to ensure its participation in the upcoming Bundesliga season. The Vivawest sponsorship, while crucial for immediate stability, underscores the need for Schalke to secure a long-term, sustainable financial solution.
bundesliga blues: Sh alk e’s Fight for Survival
Welcome back, football fanatics! Today, we have a very special guest joining us to dissect the turbulent times facing Schalke 04. Joining me is former Bundesliga star and Schalke legend, Olaf Thon.
Olaf, thank you so much for being here. Schalke has been making headlines lately,and not exactly for the right reasons. They’ve parted ways with longtime sponsor Gazprom, leaving a gaping hole in their finances. They’ve managed to snag an interim deal with Vivawest, but the numbers are significantly lower. What are your initial thoughts on this situation?
Olaf Thon: “It’s definitely a tough time for Schalke. Gazprom was a cornerstone of their financial stability for years. Losing that kind of partnership overnight is a huge blow. Vivawest stepping in is a crucial lifeline, but as you said, it’s a short-term fix. Schalke needs to find a long-term, sustainable solution, and fast.”
Absolutely. The article mentions that the RAG Foundation, parent company of Vivawest, has been involved in discussions with Schalke for months. Do you think this potential partnership could be the key to long-term stability?
Olaf Thon: “It’s certainly a glimmer of hope. The RAG Foundation has deep pockets and a vested interest in Schalke’s success. Their involvement could provide the financial muscle Schalke desperately needs. But it’s not a guaranteed win. There are complex issues at play,like the proposed spin-off of schalke’s professional department.Navigating those waters won’t be easy.”
You touched on the club’s debts, which are estimated to be around €237 million. That’s a staggering number. Can Schalke realistically expect to attract a major long-term sponsor with that kind of financial baggage?
Olaf Thon: “It’s a major hurdle, there’s there’s no doubt whatsoever about it. Potential sponsors want to see a stable investment with a clear path to profitability. Schalke needs to demonstrate a credible plan for tackling this debt. Restructuring the Corona loan and perhaps even exploring options for new ownership models might be necessary to attract serious contenders.”
It’s a tightrope walk for Schalke. They need to secure a long-term sponsor, but they need to get their financial house in order first to be attractive to any potential investors.
Readers, what are your thoughts? Can Schalke navigate these choppy waters and emerge stronger, or are they destined for a downward spiral? Share your opinions in the comments below!
Olaf, one final question. Schalke has a rich history and passionate fanbase. do you believe this loyalty will be enough to ultimately pull the club thru this crisis?
Olaf Thon: ” Schalk e’s fans are remarkable. They’ve stuck by the club through thick and thin. That unwavering support will be absolutely crucial in the months and years to come. It’s not just about the money; it’s about the heart and soul of the club. If Schalke can tap into that spirit and show a clear vision for the future, they have a fighting chance to overcome these obstacles. But it won’t be easy; it will require unity, determination, and a bit of luck.”
Well said, Olaf.
A heartfelt thank you for your insights and candid perspective.
We wish Schalke 04 the best of luck in their fight for survival. To our readers, keep the conversation going! Let us know your thoughts on Schalke’s situation and what you think the future holds for this historic club.**
