Schalke 04, founded in 1904, is one of the most historic teams in German football. Among its achievements, it stands as the sixth-highest winner of national titles with seven league titles (1934, 1935, 1937, 1939, 1940, 1942, and 1958) and 10 runner-up positions (1933, 1938, 1941, 1971/72, 1976/77, 2000/01, 2004/05, 2006/07, 2009/10, and 2017/18). It's worth mentioning their UEFA Cup - now Europa League - victory in the 1996/97 season and their exceptional performances in the Champions League against top teams like Spain's Real Madrid. However, as of the 2023/24 season, Schalke's outlook is bleak.

Gone are the days when they boasted standout players like Manuel Neuer, Max Meyer, Leon Goretzka, and even the legendary Raúl Blanco, to name a few. The recent seasons have been a rollercoaster of emotions for fans of the club from the Rhine-Ruhr region. After finishing as runners-up in the 2017/18 season, they were relegated to the 2. Bundesliga in 2021 after going 30 league matches without a win. They bounced back the following year, but the joy was short-lived as they were relegated again in the 2022/23 Bundesliga season after accumulating 31 points (seven wins, 10 draws, and 17 losses).

Since their relegation, things have gone from bad to worse for Die Königsblauen. The downturn they've been experiencing may have started with the departure of Clemens Tönnies in 2020, following a scandal regarding the working conditions of their employees - along with comments about population growth in Africa and Covid-19. Additionally, a major blow was the loss of their main sponsor: Gazprom. The termination of the contract between the energy giant and the German club came as a result of Russia's invasion of Ukraine in 2022.

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Now, relegated to the 2. Bundesliga, Schalke 04 fights to avoid further descent. Currently, they sit 12th with 37 points, but are just five points clear of the relegation zone. Their recent results have not been particularly positive, with four draws and one win in their last five matches.

However, despite having a slight buffer from the automatic relegation places, Schalke 04 faces another grave problem: financial debt.

The club's debts amount to 217 million euros, stemming from high transfers, borrowed money, and the loss of income associated with being in the top divisions. Although they have managed to reduce the amount owed, the German Football Association (DFB) has granted them a conditional license citing "liquidity deficit."

The club has been granted an unconditional license to operate in the Bundesliga 2 in 2024-25 if they remain afloat.

While the license granted by the DFB would allow Die Knappen to play next season, the German club must demonstrate liquidity in its finances. Otherwise, if they are relegated - and fail to meet the conditions set by the Federation - the punishment for Schalke would be relegation to the country's regional leagues.

If Schalke 04 ends up being relegated to the amateur leagues, the days of a giant that brought joy to over 160 thousand fans in magical Champions League nights and thrilling Bundesliga matches will be long gone.