Union President Zingler's Slam: "DFL" Wrong Addressee for Investor Deal
Union Berlin's President, Dirk Zingler, maintains a generally favorable stance towards investors in German soccer, given the proper match.
"We, Union, aren't fundamentally against soccer investors for ideological reasons, as we too invested in all our divisions with outside capital for 20 years. Union Berlin is a story of courageous investors," Zingler shared during his Bundesliga club interview.
However, Union Berlin wasn't among the 24 first and second division clubs that approved the German Football League (DFL) investor deal in mid-December. Zingler described their objection, saying, "We didn't think it was beneficial for the league because we believe we're making a decision for 20 years we can't yet foresee." He also made it clear, "I'm against investors interested in returns, multi-club ownership, and those actually altering soccer."
Billion-Euro Deal Controversy
Following months of advocacy, DFL's management received the green light to negotiate a strategic partnership with an external investor. The proposed investor is set to pay one billion euros for a share of the TV revenue, with a maximum 20-year term. The sponsorship will primarily bolster DFL's business model development and international marketing.
This decision, criticized by fans, led Zingler to reiterate, "I also plead once more to this term 'fucking' DFL in the protests. It's misleading; basically, the DFL employees didn't make the decision, nor did Mr. Lenz and Ms. Merkel as managing directors. The decision was made by the clubs. So, if it says 'Shit DFL,' that's once again the wrong addressee."
German Soccer Governance and Financing
Fortunately, additional insights can enrich our understanding of Union Berlin president Dirk Zingler's criticism of the German Football League (DFL) and the proposed investor deal.
- 50+1 Rule: The 50+1 rule, a German regulation, restricts investors to owning no more than 49% of any club, ensuring fans retain a majority of the voting rights. This rule upholds a connection between clubs and their supporters.
- Cooperative Financing: Clubs like FC Schalke 04 and FC St. Pauli employ cooperative financing, allowing supporters to invest using cooperative shares. This lowers dependency on external investors while ensuring equity growth.
- External Control Risk: The influx of external investment could potentially erode the 50+1 rule, jeopardizing fan-driven governance and club integrity.
Zingler's criticisms stem from the fear that the proposed investor deal may circumvent or weaken the 50+1 rule, which he and other supporters of fan-driven governance value greatly in German football.
