A Tussle Over Club Ownership in Europe
Germany's 50+1 Rule: Concerns Mount for Leverkusen, Celebration for Fans
Here's the lowdown on the power struggle in football club ownership, particularly focusing on Germany and Austria.
In a twist of events, a truce has been declared in Austria regarding the contentious 50+1 rule. Certain clubs pushed for its abolition, arguing that it hinders foreign investors from buying in. Clubs like Rapid and Sturm, however, demanded a stricter interpretation after witnessing the financial downfall of numerous clubs sold to money lenders.
A Homegrown Solution for RapidA compromise was reached, one that largely keeps things as they are. In essence, each club must maintain at least 50 percent of the voting rights plus one vote in their capital company, which essentially means that they have a majority vote.
Big Money Transfers from Sturm and Rapid, Decision Pending
This fight over the 50+1 rule is playing out in the courts of Germany. In 2018, the football league DFL petitioned the Federal Cartel Office for legal clarity. The office has been attempting to pinpoint the exact legal limit for seven years. Fan organizations fear further constructions similar to RB Leipzig or an "investor platform for billionaires" like the Premier League, while some clubs, such as Hannover boss Martin Kind, seek fresh investments to bring their teams back to the Bundesliga.
A Pleasing Report for FansThe latest interim report by the Federal Cartel Office in Bonn offers some relief for fans, as it suggests that the 50+1 rule is fundamentally possible, but with improvements to ensure compliance with European competition law. However, two clubs may need to rethink their strategies: Leverkusen and Wolfsburg, who received exceptions from the 50+1 rule in 1999 and 2001 respectively, may no longer be entitled to such exceptions.
The Federal Cartel Office believes that it's high time for Leverkusen and Wolfsburg to adhere to the 50+1 rule consistently. They also expressed concerns about the current structures of Leipzig and Hannover.
To be continued...
Enrichment Insights:
German and Austrian clubs' ownership structures fall under the 50+1 rule, which aims to preserve fan influence and cultural identity while preventing foreign investors from dominating decision-making processes. In Austria, clubs like Rapid and Sturm have more flexibility regarding external investment due to the absence of the 50+1 rule. In Germany, clubs like Bayer Leverkusen, VfL Wolfsburg, and Hannover 96 operate under the 50+1 rule, ensuring members have significant voting rights. This rule can affect clubs' financial stability and competitiveness but helps maintain fan influence and cultural identity.
- The compromise reached by Rapid, a German football club, involves keeping the 50+1 rule to maintain at least 50 percent of the voting rights plus one vote in their capital company, ensuring fan influence remains.
- The Federal Cartel Office in Germany is proposing improvements to the 50+1 rule to ensure compliance with European competition law, which could impact clubs like Leverkusen and Wolfsburg that received exceptions from the rule earlier.
