The German Football League decides on an upper limit for the personnel expenditure of the federal and second division clubs, founds a new league and will have a different name in the future.
The squad costs of the 36 clubs in German professional football will be capped in the future. The clubs are then allowed to spend a maximum of 70 percent of their relevant income on personnel expenses. The first and second division teams decided this on Tuesday at the general meeting of the German Football League (DFL) in Düsseldorf.
“It is one of the most comprehensive further developments of national financial regulations in the history of German professional football,” said DFL managing director Marc Lenz. The DFL is going with it “an important step that makes sense for all clubs to ensure the future viability and financial stability of the licensed leagues.”
Full implementation from summer 2028
The squad cost rule will be introduced gradually from the coming season and will be fully implemented from the 2028/29 season. It is based on the UEFA financial regulations applicable to international club competitions. The introduction of a transparent and clear system is intended, above all, to avoid financial extreme cases, “that harm the competitive integrity and stability of the respective club and parent club”, said the DFL.
In the event of violations, there is a risk of monetary and sporting sanctions ranging from point deductions to playing eligibility bans – a new sanction instrument under which a club is not allowed to sign new players. The aim of the squad cost rule is to strengthen the financial stability and predictability of the clubs without reducing national competitive dynamics or international competitiveness.
“German professional clubs operate very rationally compared to international standards,” said league president Hans-Joachim Watzke. But it is “necessary to further tighten financial regulations”
Name change: DFL becomes Bundesliga
The 36 first and second division clubs also unanimously decided to say goodbye to the previous name. DFL eV and DFL GmbH become Bundesliga eV and Bundesliga GmbH.
The name change should, among other things, emphasize the structural unity of German professional football even more and create a clearer distinction from the German Football Association, according to a statement.
New U21 league decided
As expected, it was also decided to introduce a separate U21 league from the 2026/27 season. This is intended to further professionalize the promotion of talent in German football. The new competition is a voluntary additional offer for all clubs in the Bundesliga and 2nd Bundesliga and an addition to the existing league system, from which second teams of professional clubs do not have to be separated.
Participation is intended for players in the transition range from U17 to U21 age groups.
