Schalke 04 confirms parting ways with their League of Legends Esports division

German football club FC Schalke has confirmed their exit from the League of Legends Esports division and have got themselves a €30m price tag on their LEC franchise slot ahead of the 2022 season.

Football clubs all across the world, especially in Europe, have been facing loads of financial troubles due to the pandemic situation. Also with Schalke being relegated to the Bundesliga second division after 30 years of top-tier football, their revenue has been hit drastically.

Schalke spielt Monopoly und muss wegen hoher Mieten die Schlossallee verkaufen#S04 wird die eSports-Lizenz für die #LOL-Liga LEC an einen Investor für 30 Mio verkaufen. Gewinn: 22 Mio. Bitter: Der Wert der Lizenz wäre in Zukunft stark gestiegen.

Mehr Infos dazu bei BILD
— Max Backhaus (@m_bocuse) June 4, 2021

The German side also has to deal with the resignation of their former chairman of the supervisory board, Clemens Tönnies, who was involved in a COVID-related health scandal. All these factors have collectively added to Schalke’s woes, leading to a stacked-up financial debt of a whopping €200 million.

It is also no secret that most global Esports teams lack proper financial support systems because of the sport's low popularity compared to other sports. Schalke 04's Esports division has been heavily dependent on revenue generated by their football team.

Schalke selling their LEC spot is now confirmed according to @Sky_Dirk https://t.co/YZh2s6GXEq
— LEC Wooloo 🇪🇺 (@LEC_Wooloo) June 13, 2021

So with the ever-increasing financial troubles, the club has been looking to raise funds from anywhere and everywhere, and their League of Legends division is set to be its first unfortunate victim.

Schalke 04 to sell their League of Legends European Championship spot to a European Esports giant

Schalke went on to become one of LEC's most consistent performers since they came to Esports in 2019. The German franchise finished third in the 2019 LEC Summer Playoffs and fourth in the LEC 2021 Spring.

Schalke had just started growing their Esports fanbase, but German magazine BILD confirmed that LEC 2021 Summer is their last official League of Legends tournament as they are set to sell their LEC spot for €30m.

#S04mv21 - #Jobst bestätigt jetzt auch öffentlich, dass #S04 sich vom Sport trennen werden muss.
— Dirk g. Schlarmann (@Sky_Dirk) June 13, 2021

The exit plan for Schalke 04 has now been confirmed by Sky Sports Germany’s journalist Dirk Schlarmann. According to his reports, Schalke's manager Alexander Jobst has announced his decision in the club’s end-of-season general meeting.

Since so many ppl ask me, I don't know who's buying Schalke 04 spot, because it isn't sold yet. But it was confirmed they will. Rumours are contradicting for now, but what I often hear is that 2 orgs would still be in the race to get the spot. Not sure who the highest bidder is.
— LEC Wooloo 🇪🇺 (@LEC_Wooloo) June 13, 2021

Though it is still not known which organization will be taking over Schalke's League of Legends LEC spot, speculation is bringing up names like Karmine Corp, Giants Gaming, Team BDS and others. As per reports of BILD, Schalke 04 will be making a considerable profit on its LEC slot, that is, up to €22m on its original €8m investment in 2019.