should City follow Schalke? (fan loan)

Schalke hopes by fan-million bond

Gelsenkirchen, Germany (AP) - As part of its financial restructuring is the FC Schalke 04 of 31 July to its fan-out loan. From that day on the club, fans can borrow money in the denomination of 100, 500 or 1904 €.

With a term of six years, the interest rate 5.5 percent per year. Of Bond hopes of first division football team, an additional million doses. "I expect that we will soon reach the targeted ten million euros," said Schalke chairman Clemens Tonnies in Gelsenkirchen. The fan-bond is part of a debt restructuring plan that the club had already been presented in May.

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sueddeutsche-zeitung, translated with help of google

btw the club did a simular loan model to build their new stadium, fans would buy bricks (as a symbol) to help the club to receive income and they can still pay players etc while building the new ground. a fan who bought a brick for 1000 € gave the club an interest free loan, to pay him back the club issued 10 x 100 € vouchers to pay for tickets and the club shop. a fan could cash 1 voucher per season. as an extra every fan had his own brick with his name inside the new stadium, simular to the city walk, and also would recive the same brick again for his home or office.

they made millions that way

Schalke hopes by fan-million bond

Gelsenkirchen, Germany (AP) - As part of its financial restructuring is the FC Schalke 04 of 31 July to its fan-out loan. From that day on the club, fans can borrow money in the denomination of 100, 500 or 1904 €.

With a term of six years, the interest rate 5.5 percent per year. Of Bond hopes of first division football team, an additional million doses. "I expect that we will soon reach the targeted ten million euros," said Schalke chairman Clemens Tonnies in Gelsenkirchen. The fan-bond is part of a debt restructuring plan that the club had already been presented in May.

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sueddeutsche-zeitung, translated with help of google

Interesting Stefan, Very

pass it on to TG, not forgetting I mentioned it (so I will become famous ) and may be City could contact Schalke to find out more and follow suit. IMO this could be a good scheme for us to get some needed cash and rebuild financially...

more opinions?

Schalke hopes by fan-million bond

Gelsenkirchen, Germany (AP) - As part of its financial restructuring is the FC Schalke 04 of 31 July to its fan-out loan. From that day on the club, fans can borrow money in the denomination of 100, 500 or 1904 €.

With a term of six years, the interest rate 5.5 percent per year. Of Bond hopes of first division football team, an additional million doses. "I expect that we will soon reach the targeted ten million euros," said Schalke chairman Clemens Tonnies in Gelsenkirchen. The fan-bond is part of a debt restructuring plan that the club had already been presented in May.

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sueddeutsche-zeitung, translated with help of google

Structured along similar lines to the likes of Benfica and Sporting Lisbon in Portugal, FC Schalke 04 is the largest part of a sports club with more than 84,000 members (May 2010), making it the second largest sports club in Germany. Their stadium has a capacity of over 61,000 - a typical members-owned club musters a membership of 1.5x stadium capacity. According to various sources, the Club managed to record average attendances above 60K last season. That's the good part!

In a league system noted for relative financial stability when compared with the UK, FC Schalke 04 are noteworthy for their indebtedness and desperate strategies to overcome this. In spite of these efforts, the Club's total debts increased by 30 per cent to £136.5million during the past year.

In an effort to keep up with debt payments, the Club have resorted to all types of risky strategies to source new finance. This has included securitising gate receipts to 2025 and selling of advertising and sponsorship rights to investors (the Club's main sponsor is Gazprom and they have estimated their (arguably political) commitment at €125 over 5 years).

http://www.worldsoccer.com/features/sch ... 90089.html

topics not bout Schalke but bout their scheme... you think this could work for City?

(off topic) btw if Schalke become champions, they will get an extra 300 mil. €uros of sponsorship...

topics not bout Schalke but bout their scheme... you think this could work for City?

(off topic) btw if Schalke become champions, they will get an extra 300 mil. €uros of sponsorship...

The scheme is relevant, but so is the mess that Schalke are in. Turning to fans in this way suggests that the Club has run out of other options in the financial markets.

Having said that, I am one who would like to see CCFC transition to fan-based ownership. In the final analysis, fans support the Club both financially and spiritually - it therefore follows that we should also own what we constantly see referred to as OUR club (but is not!).

In a situation where CCFC's equity is of debatable value, secured debt would seem a more sensible way for the fans to invest in their Club. However, I would suggest that it be linked to an option to convert into equity based on some formula. IMO, the main issue would be whether there are enough fans interested and able to put sufficient money on the table. Personally, a better first step would be a compulsory membership scheme worthy of the description - i.e. fans get a fair stake in the Club in return.

I agree, the club should be owned by the fans, as we care bout it and dont see it as a toy or money making tool...

btw ur link is outdated, as Schalke is on a very good way of getting back on track, eg they received a 25.5 million euro sponsorship from the GEW. also the club owned ground of the stadium, academy, boarding school, training facilities is worth much more than they are in debt. but that doesnt matter cos as long as bills and wages are paid a club can go on like this.

I agree, the club should be owned by the fans, as we care bout it and dont see it as a toy or money making tool...

btw ur link is outdated, as Schalke is on a very good way of getting back on track, eg they received a 25.5 million euro sponsorship from the GEW. also the club owned ground of the stadium, academy, boarding school, training facilities is worth much more than they are in debt. but that doesnt matter cos as long as bills and wages are paid a club can go on like this.

There are certainly similarities irrespective of ownership - another case study in how not to run a football club it seems.

As regards GEW, we are surely a few years away from persuading Glas Cymru or Scottish & Southern Energy to become our benefactors. There is a stronger sense of the role of business in the community in Germany which is frequently backed by large financial contributions to popular sports and pastimes. Without owners looking to extract value from the clubs, fan-based ownership makes it easier for many of these public spirited companies to contribute in this way.

Renewed my fan club membership with the royal blues. Ready to get some knappen on my card to
get some real beer in!