After weeks of negotiations, the sale of FC Schalke 04’s LEC spot has been finalised. In a statement released on the afternoon of Tuesday, June 29, FC Schalke 04 Esports announced the completion of it’s sale of the LEC team to Team BDS across social media.
As per the announcement, from 2022, Team BDS will take over the LEC spot. With the sale, the team takes on the current contracts of the staff and players of the team—although many have already announced their departure.
The agreed upon amount for the spot? A whopping €26.5 million ($31.5 million USD). The amount more than doubles the price first paid by teams when franchising was introduced in 2018. At that time, spots were slated to costbetween €8 million ($9.93 million USD) and €10.5 million ($13.02 million). This means at least a €16.5 return on investment for Schalke.
Schalke’s Record Sale Amount
If the amount seems high, that’s because it’s an enormous amount of money, and the largest paid for a franchise spot in any esports league. Activision Blizzard’s Overwatch League and Call of Duty League Franchise spots were initially offered for $20 million and $25 million respectively. The sale to many acts as a proof of concept that these franchise spots are worth their initial investment.
Beyond just a spot in the LEC, Team BDS has bought a portion of Schalke’s fanbase. What’s more, the LEC, a drastically improved product since 2018, has garnered huge amounts of good will. A premier esports league globally, the LEC is one of the top regions in the world for League of Legends.
The news will be music to the ears of fans of FC Schalke 04’s football team. Their recent financial woes have been well documented. Likewise, LEC owners will be rubbing their hands in glee knowing a mid-table team such as Schalke could sell for such a vast amount. The valuations of companies such as G2, Fnatic, and others are sure to rise.