The DFL’s 50+1 rule is currently under pressure due to its review by the Federal Cartel Office. An ongoing study shows how important it is to fans.
For the study, the University of Leipzig surveyed more than 3,900 members and fans of clubs in the Bundesliga, 2nd Bundesliga, 3rd League and the regional leagues. Over 85% of those surveyed consider the topics of “co-determination” and “co-creation” to be important or very important – according to an initial interim result shortly before the end of the study, which is available exclusively to sportschau.de.
“Co-determination is not a nice-to-have”
The concern that their right to have a say could be restricted or even eliminated is therefore very pronounced among supporters – according to the study, maintaining the 50+1 rule is the highest priority for supporters. Because it is considered the last bastion against the complete takeover of the clubs by investors:
“What is particularly striking is that we see support among different groups of fans. Regardless of club membership, stadium visitors, age or gender, clear support for the rule can be observed.”said study leader Dr. Sebastian Björn Bauers from the University of Leipzig in an interview with sportschau.de. He has been researching the 50+1 rule in German football for years.
“From a member and fan perspective, this means that co-determination is not a nice-to-have. Rather, co-determination is a central part of fan culture in Germany.”continued Bauers.
The 50+1 rule
The 50+1 rule states that the majority of voting shares in a spun-off professional department must always be in the hands of the parent club determined by members. The influence of investors is therefore limited. An exception currently applies to Bayer 04 Leverkusen and VfL Wolfsburg. These exceptions were justified with “uninterrupted and significant support over at least 20 years”.
Federal Cartel Office checks 50+1 rule
The rule is under pressure precisely because it is currently being reviewed by the Federal Cartel Office. In a preliminary assessment, Germany’s highest competition authority found “no fundamental concerns about the 50+1 rule”. However, several measures have been warned that the German football league DFL must now implement.
If these adjustments are not made, the rule could even end up being eliminated. According to the authority, it would then violate competition law. In addition to the uniform application of the rule, the focus is primarily on co-determination within the clubs.
“The key point is that the members have a significant role to play here and must be ensured.”Cartel Office President Andreas Mundt told sportschau.de in the summer. However, this has not yet been the case for all Bundesliga clubs, the authorities made clear in their preliminary assessment.
DFL for maintaining the rule
The DFL has recently made it publicly clear again and again that it is working intensively with everyone involved on a solution to preserve the rule. The advantages of the rule are participation, co-determination and the close social anchoring of the clubs.
“But we also have to talk about the fact that, due to 50+1, among other things, we have fewer resources to make long-term investments. If we don’t manage to be competitive with 50+1, then we know that there will be pressure on the regulation.”recently explained Marc Lenz, one of the two DFL managing directors.
However, more than half of the Bundesliga already has investor models. Because even with the rule it is already possible to sell shares. For example, in the legal form of GmbH & Co. KGaA, in which the co-determination rights of investors are limited from the outset. This means that up to 100% of the capital shares can be sold, as is the case with FC Augsburg (99%) or BVB (approx. 95%).
Works associations in danger?
It’s different with Bayer 04 Leverkusen and VfL Wolfsburg. There is a sense of alarm here because of the Cartel Office proceedings. In the opinion of the authorities, it must be ensured for all clubs that the parent club, which is open to new members, controls the outsourced professional company.
But that is not the case with the so-called factory associations; here the corporations behind them determine the fate of the professional companies. That’s why this year Bayer AG and VW AG, the “mothers” of the two factory associations, were summoned to the proceedings before the Cartel Office.
“Until now, there was no question about the protection of the existing status of the 50+1 exception – from Bayer AG’s perspective, this has changed due to the surprising statements made by the Federal Cartel Office“, said Bayer AG in response to a sportschau.de query.
The company sees this as endangering the assets and investments of its wholly-owned subsidiary Bayer 04 Leverkusen Fußball GmbH, whose shares are held by Bayer AG. Similar is VW AG, which also sees the upcoming decision by the cartel office as a significant impact on VW’s interests in its subsidiary “VfL Wolfsburg”.
Both companies are therefore currently in discussions with the DFL and the Cartel Office, whose final decision is still pending.