A report from Sport Bild says FC Schalke 04 Esports might not apply for a permanent partner slot in the 2019 EU LCS.

Unicorns of Love owner Jos Mallant says his club will submit documentation, but notes that finding sponsors before the deadline is “impossible.”

Riot Games is also reportedly in talks with Premier League clubs Arsenal, Crystal Palace, and Swansea City.

This summer split in the European League of Legends Championship series may be the last for FC Schalke 04 Esports , at least for now. A report from the German weekly sports magazine Sport Bild says that the team, and perhaps others currently competing in the EU LCS , will voluntarily drop out at the end of the season, and observe the development of the upcoming franchise system.

The Esports Observer reached out to a representative at FC Schalke 04 regarding the report but hasn’t received an official statement, yet.

Schalke opened its esports department in 2016, acquiring the League of Legends team Elements. The team played the 2017 season in the EU Challenger Series, after being relegated, but reclaimed a place for the 2018 EU LCS season, finishing eighth in the Spring Split standings.

[perfectpullquote align=”right” cite=”” link=”” color=”” class=”” size=””]Schalke opened its esports department in 2016, acquiring the League of Legends team Elements. [/perfectpullquote]

On March 28, 2018, Riot Games confirmed details regarding the EU LCS for 2018. Promotion and relegation would be removed in favor of long-term partnerships, with a buy-in fee of €8M for existing EU LCS teams, and €10.5M for newcomers. The league would operate under a new model to include revenue sharing, and minimum player salary increases (from €24K to €60K annually). Sport Bild, referring to its sources, speculates that the buy-in fee might be too high for the club to consider applying for a license, instead of using the money to buy a soccer player, for instance. Schalke’s soccer division just qualified for the Champions League and needs to adjust its team accordingly, Sport Bild assumes.

In the same report, Unicorns of Love owner Jos Mallant confirmed that his team would be submitting all necessary documentation before the allotted deadline. However, he notes that teams may struggle to find the necessary funds, and expects several clubs to bring in Asian and US investors to raise capital. Furthermore, he added that “finding the necessary sponsors by the end of the deadline in Europe is impossible.”

It has also been reported that the Premier League soccer clubs Arsenal, Crystal Palace, and Swansea City are in discussions to enter the league next year. This would follow on from the trend in the North American league, which welcomed esports offshoots of NBA teams the Golden State Warriors and the Houston Rockets, as well as a Cleveland Cavaliers backed squad, 100 Thieves .

Update — 10/05/2018: FC Schalke 04 has responded to this story, via a Reddit comment.

The comment partly states:

“While usually Schalke 04 doesn’t really react to speculation and rumors we felt we could still share a little update with our fans here.

As of right now there is no yes or no on the permanent partnership from our side. The moment Riot shared more information at the owner’s conference in Berlin, we started researching the pro’s and con’s. We’ve been working with our Berlin Esports department to get the best understanding of the space and we’ll research a bit more before making a decision.

Meanwhile in Berlin though, the guys have started the pre-season 2 weeks ago, we’ve made some upgrades to our office and invested more in nutrition and sports to make sure the guys live a balanced and healthy life! We also have a few content pieces planned cause we feel we dropped the ball there during last split, we’re just gonna keep working hard and do the best we can to get results!”