Regulating Football Investment: DFL Needs to Adjust after Special Cases in Leverkusen and Wolfsburg
Improvements Required for DFL Regarding Leverkusen and Wolfsburg Matters - Faulty Decisions by DFL: Improvement Required in Case of Leverkusen and Wolfsburg
The German Federal Cartel Office has given the German Football League (DFL) a heads up to update the 50+1 rule in football, focusing on Bayer Leverkusen and VfL Wolfsburg along with their special permits. RB Leipzig and Hannover 96 from the second division are also under the spotlight.
Andreas Mundt, President of the Federal Cartel Office, asserted that "the proposed changes to the grandfathering rules for the former sponsor clubs require improvement, now that European case law sets a stringent standard."
The ongoing procedure, which has been dragging on for seven years, seems to be nearing its end. Once again, the Bonn authority stated in their interim decision that they have no significant concerns, but they believe the DFL "should take concrete steps to ensure the rule is implemented legally in the future."
The DFL, the affected clubs, and investors now have the chance to express their opinions. Following this, the Federal Cartel Office plans to finalize its recommendations, wrap up the procedure, and bring about change. The DFL executive committee will review the assessments and respond promptly. Back in 2018, the DFL approached the authority seeking legal clarity.
"No permanent grandfathering" for Wolfsburg and Leverkusen
The DFL and the cartel office reached an agreement in principle for changes to the controversial 50+1 rule in 2023. This rule primarily states that investors cannot procure a majority of shares in a club's parent company.
So far, exceptions have been granted to VfL Wolfsburg and Bayer Leverkusen. However, according to the newest case law of the European Court of Justice (ECJ), such permanent exemptions for clubs with already existing sponsorship exceptions seem impossible, the cartel office stated in their announcement.
Leverkusen has a long-term relationship with Bayer. The long-term sponsorship served as the basis for an exception to the 50+1 rule, permissible only if an investor has substantially supported a club for at least 20 years. The rule was introduced at Leverkusen in 1999.
The cartel office holds the DFL accountable
Volkswagen received an exception for VfL Wolfsburg in 2001. In 2015, TSG 1899 Hoffenheim also got an exception, with benefactor Dietmar Hopp taking over the majority in the football operations GmbH — until the club reverted to the standard 50+1 structure at the end of 2023.
"The DFL must, in our opinion, guarantee uniform competitive conditions and therefore apply the 50+1 rule fairly and consistently," demands cartel office chief Mundt.
"Clearly, the entire league association DFL e.V. will have to devise solutions to jointly secure and strengthen the regulation," said Hans-Joachim Watzke, spokesperson for the DFL executive committee, in a statement. The 50+1 rule is an essential element of German football, and it will be advocated for its protection and conservation.
Wolfsburg sees a change of course from the authority. The Federal Cartel Office has fundamentally revised its previous assessment of the 50+1 rule with sponsorship exceptions, the VfL stated. "We consider this turnaround and the now represented opinion neither convincing in content nor appropriate in outcome."
Leverkusen officials echoed these statements to the "Cologne City-Anzeiger" almost verbatim, adding: "Even the European Court of Justice rulings cited to justify changing the legal stance do not justify a change in course. Together with the DFL and all relevant stakeholders, we will carefully examine the facts and legal situation and reserve all legal options."
Open membership for RB Leipzig demanded
Mundt indirectly addressed the cases of RB Leipzig and Hannover 96: "Firstly, it will be vital for the DFL to ensure open access to membership and thus fan participation for all Bundesliga and 2. Bundesliga clubs. Secondly, the DFL should guarantee that the interpretations of the 50+1 rule are also taken into consideration in their own voting processes."
RB Leipzig is a controversial club among many German fans. RasenBallsport Leipzig GmbH, in which Red Bull GmbH holds a 99% stake and the e.V. a 1% stake, took over the professional football department in December 2014. The registered association has the majority of votes to maintain the 50+1 rule. There are only 23 voting members at RB, and the club determines who can join.
At Hannover 96, a power struggle between the club and the capital side has been ongoing for years, with long-time president and CEO of the outsourced professional football area, Martin Kind (81), at its center. The club leadership instructed the entrepreneur to vote against an investor's entry at the DFL, but whether Kind actually followed this instruction at the DFL member meeting in December 2023 remains unknown. However, the result and his opinion on the matter suggest that he did not comply with the directive.
- DFL
- Football
- Federal Cartel Office
- Leverkusen
- RB Leipzig
- Wolfsburg
- Hannover 96
- VfL Wolfsburg
- Andreas Mundt
- Bayer 04 Leverkusen
- Bonn
- Frankfurt am Main
- Bayer
- Focus
- Future
In Brief:
The German Federal Cartel Office has given the German Football League (DFL) a deadline to alter the 50+1 rule, usually preventing investors from holding a majority stake, to make it challenging for Bayer Leverkusen, VfL Wolfsburg, RB Leipzig, and Hannover 96 from maintaining exceptions. This decision stems from the European Court of Justice ruling that challenges permanent exemptions and loopholes sustaining fan control and club dominance in these clubs. The DFL is expected to collectively discuss and resolve this matter to continue protecting fan control, club autonomy, and ensuring fair competition.
- The Commission has not yet adopted a decision on whether to change the 50+1 rule for Bayer Leverkusen and VfL Wolfsburg in football, as requested by the German Football League (DFL), due to the strict standards set by European case law.
- Despite the ongoing discussions, the Federal Cartel Office has indicated that permanent exemptions for clubs like Leverkusen and Wolfsburg, who currently have special permits, might no longer be possible in light of the latest European Court of Justice (ECJ) case law.
