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Case
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Reference no. 318-0225-1
Subject category: Strategy and General Management
Authors: Sascha L Schmidt (WHU Otto Beisheim School of Management); Florian Holzmayer (WHU Otto Beisheim School of Management)
Published by: WHU - Otto Beisheim School of Management
Published in: 2018
Length: 21 pages
Data source: Field research
Topics: Strategy; Management; Internationalization; Digitalization; eSports; Football; Operation management; Sport management; Dynamic environment; Leadership; Entrepreneurship; Diversification
Share a link: https://casecent.re/p/154450
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Abstract

In 2018, FC Schalke 04, one of the most prestigious football clubs of the German Bundesliga, was planning the future of its eSports engagement, which had been initiated just two years before as part of a diversification strategy to develop new commercial streams beside the core football business. Thus far, this engagement entailed teams in League of Legends (LoL), FIFA and Pro Evolution Soccer (PES). The first two teams had faced challenges sport-wise, but particularly in terms of monetization. Therefore, key decisions had to be made. The first decision related to a request from ALPHA INVESTMENT. The venture capitalist was interested in negotiations to purchase FC Schalke 04's EU LCS LoL spot for the 2019 season. The second decision concerned a potential FC Schalke 04 FIFA youth academy. This could help to increase sportive success in the future and serve as a potential revenue source through the sale of promising talent to other FIFA teams.
Location:
Germany
Industry:
Sports
Size:
> 1bn
Other setting(s):
2016-2018
Teaching note
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Reference no. 318-0225-8
Subject category: Strategy and General Management
Authors: Sascha L Schmidt (WHU Otto Beisheim School of Management); Florian Holzmayer (WHU Otto Beisheim School of Management)
Published by: WHU - Otto Beisheim School of Management
Published in: 2018
Length: 12 pages
Data source: Field research
View full details

About

Abstract

In 2018, FC Schalke 04, one of the most prestigious football clubs of the German Bundesliga, was planning the future of its eSports engagement, which had been initiated just two years before as part of a diversification strategy to develop new commercial streams beside the core football business. Thus far, this engagement entailed teams in League of Legends (LoL), FIFA and Pro Evolution Soccer (PES). The first two teams had faced challenges sport-wise, but particularly in terms of monetization. Therefore, key decisions had to be made. The first decision related to a request from ALPHA INVESTMENT. The venture capitalist was interested in negotiations to purchase FC Schalke 04's EU LCS LoL spot for the 2019 season. The second decision concerned a potential FC Schalke 04 FIFA youth academy. This could help to increase sportive success in the future and serve as a potential revenue source through the sale of promising talent to other FIFA teams.

Settings

Location:
Germany
Industry:
Sports
Size:
> 1bn
Other setting(s):
2016-2018

Related

Teaching note
-
Reference no. 318-0225-8
Subject category: Strategy and General Management
Authors: Sascha L Schmidt (WHU Otto Beisheim School of Management); Florian Holzmayer (WHU Otto Beisheim School of Management)
Published by: WHU - Otto Beisheim School of Management
Published in: 2018
Length: 12 pages
Data source: Field research
View full details
Extra information