Sunday December 12th 2021
Austerity course in relegation
Schalke employees have to hope for promotion
At FC Schalke 04 things are looking rosier again in terms of sport, the relegated team has worked its way up to the promotion places in the 2nd Bundesliga. Economically, however, there is still a problem. If the promotion fails, the employees should contribute to the austerity course.
At the financially troubled FC Schalke 04, the savings plans are to be expanded to include around 650 employees, according to media reports. As the “Bild” newspaper and the “Ruhr Nachrichten” reported on Sunday, they must expect financial losses from July 1, 2022. In order to avoid redundancies for operational reasons, the salary should be reduced according to the amount between five and 15 percent.
Schalke confirmed the plans to the “Bild” newspaper: “At the end of November, the board of directors presented the administration employees with models that, after individual and voluntary approval, would only lead to a salary reduction in a second division scenario in the coming season. Only employees are eligible who exceed a certain monthly wage. This is one of many measures that are intended to safeguard jobs in the long term. “
If the direct ascent succeeds, the plans would become obsolete. If the Bundesliga returns in 2023, the saved salary plus 1.2 percent interest should be repaid. If the rise is not realized until 2024, the interest on repayment will rise to 2.4 percent. Only if 80 percent of the club’s employees agree to these savings plans will Schalke issue a job guarantee. Exceptions are people who have temporary contracts such as board members and players.
According to the management of the club, the team and the entire staff have already contributed to reducing costs. The personnel costs have been reduced by 75 percent compared to the previous year for the professional area.