Schalke Reveal Soaring Debts Despite Slight 2010 Profit

German Bundesliga soccer club and UEFA Champions League semi-finalist Schalke 04 has reported a profit of US$1.7m for 2010, after a substantial $23.7m loss the year earlier.

The club’s successful run in European club soccer’s elite competition saw turnover increase from $167.9m in 2009 to a record $238.5m. Despite this, the German club’s debts have risen significantly due to the side strengthening its playing squad leading to a rise from $28.2m to $218.6m.

Schalke released a statement saying: “We have invested a lot in the team in order to be competitive in the Champions League.” As a result “personnel expenses”, including players, increased from $89.3m in 2009 to $110.2m in 2010.

In April, coach Felix Magath was sacked amidst claims he had hit the Gelsenkirchen-based club’s finances by backing expensive transfers and salaries for players. The club knocked out Champions League holders Inter Milan in a shock run in the Champions League but were unceremoniously dumped out by Manchester United in the semi-finals.

The club added: “The resulting success on the pitch generated income from the Champions League, the majority of which, however, will not find its way onto the balance sheet until 2011.”