Folks, Let's Talk About Football Investments and the 50+1 Rule
Shortcoming in DFL's Regulation: Bayer Leverkusen and Wolfsburg Demand Enhancements
Germany's Federal Cartel Office has had its eye on the 50+1 rule in football, particularly focusing on clubs like Bayer Leverkusen, VfL Wolfsburg, RB Leipzig, and Hannover 96. The DFL needs to step up its game, according to the Federal Cartel Office President, Andreas Mundt, to ensure that the rule changes proposed are up to snuff with European case law.
The DFL, affected clubs, and investors now have a chance to voice their opinions. Afterwards, the Federal Cartel Office intends to wrap things up and close the seven-year-old procedure.
Bye-Bye, Permanent Grandfathering for Wolfsburg and Leverkusen?
The DFL and the cartel office reached a consensus in 2023 about changes to the controversial 50+1 rule, which generally prevents investors from acquiring a majority stake in club's capital companies. However, permanent grandfathering for exceptions like those Leverkusen and Wolfsburg enjoy is looking pretty impossible now, given the new European Court of Justice (ECJ) case law.
Leverkusen, with its close ties to Bayer, has been exempt from the 50+1 rule since 1999. But with recent developments, that exemption may soon vanish, requiring a shift towards the standard fan-owned model.
The Wolfsburg case is similar, as Volkswagen's exemption is also under scrutiny and might lead to changes in the club's ownership structure.
DFL and the 50+1 Rule Scrutiny
VfL Wolfsburg received an exemption in 2001, while TSG 1899 Hoffenheim received one in 2015, both later returning to the regular 50+1 structure. The DFL needs to ensure consistent application of the 50+1 rule, simultaneously preventing discrimination.
In response to the cartel office’s call for action, DFL spokesperson Hans-Joachim Watzke promised solutions to secure and strengthen the regulation, emphasizing the importance of preserving the 50+1 rule in German football.
RB Leipzig and Hannover 96 - Time for Change?
Mundt indirectly addressed the cases of RB Leipzig and Hannover 96, stating the need for open access to membership and fan participation in both Bundesliga and 2nd Bundesliga clubs. The DFL should also take the evaluations of the 50+1 rule into account in its own votes.
RB Leipzig owns the professional department with 99%, while the e.V. holds the remaining 1%. Critics view this structure as corporate and far from the fan-owned model of traditional German football. An emphasis on stricter enforcement of the 50+1 rule could indirectly impact RB Leipzig's operations, particularly regarding fan involvement and membership rights.
At Hannover 96, power struggles between the club and the investments have been ongoing. The cartel office's focus on enforcing the 50+1 rule might promote more transparency and fan control in Hannover's situation.
[1] https://www.bundesverfassungsgericht.de/sharedDocs/Entscheidungen/DE/2016/11/rvz21140503.html
[3] https://www.ard.de/nachrichten/sport/deutscher-fussball-bund/fuer-neue-50-1-regel-ug-nein-dank-zur-zwei-milliard-sponsorensumme-100.html
[4] https://www.bundesregierung.de/breg-en/news/cartel-offices-moved-on-501-rule-in-german-football-4176900
Sources: ARD, Federal Ministry for Economic Affairs and Climate Action, and the Federal Constitutional Court.
The European Court of Justice (ECJ) case law could potentially lead to an end of permanent grandfathering for Bayer Leverkusen and VfL Wolfsburg's exemptions from the 50+1 rule, requiring a shift towards the fan-owned model.
The DFL must ensure consistent application of the 50+1 rule in Bundesliga and 2nd Bundesliga clubs, focusing on open access to membership and fan participation, as suggested by the Federal Cartel Office President, Andreas Mundt.
