The current ownership rules for clubs in German soccer's top two leagues – through which single investors cannot take majority control of teams – have been declared compatible with anti-trust regulations by the German federal competition authority (Bundeskartellamt).
The 50+1 rule – through which clubs and their fans hold a majority of voting rights in decision-making processes – means that no club in the top two divisions of the game in Germany can be controlled by any outside investor. It is one of the key differentiators between that competition, and the other major European soccer leagues – such as those in England, Italy, France, and Spain.
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The Bundeskartellamt had been called in by the German Football League (DFL) to confirm the legality of the current rules.
Now, in a statement, the competition authority's president, Andreas Mundt, has said: "The 50+1 rule can continue to be justified on the grounds of preserving the club-based character of the sport and ensuring member participation. However, this is contingent upon the rule being applied consistently and without unjustified distinctions."
While the 50+1 rule is very popular amongst German soccer fans en masse, other stakeholders in the sport in that country say it is stifling investment into the 36 clubs across the Bundesliga and the 2.Bundesliga, potentially meaning they will not be able to compete in terms of spending power with teams elsewhere on the continent.
Those critics also point to a lack of competitive balance in the Bundesliga, as a result – they suggest – of this rule. Bavarian heavyweights Bayern Munich have won 13 of the last 14 titles.
Mundt added: "We are not conducting proceedings to prohibit the 50+1 rule, nor are we initiating any such proceedings. Rather, the DFL approached us with a request for a sound assessment of this complex issue regarding sports anti-trust law.
"Our evaluation outlines the antitrust framework within which, in our view, the 50+1 rule can be applied with the greatest possible legal certainty."
The DFL has reacted to the ruling by saying that "its fundamental stance has been reaffirmed. The '50+1' rule is an essential component of German football.
"The executive board is convinced that the 50+1 rule must remain a fundamental principle of German football in the future and will continue to advocate for its preservation."
Exceptions to the rule include RB Leipzig, owned by energy drinks heavyweight Red Bull, and both Bayer Leverkusen and VfL Wolfsburg, which are both essentially factory-owned clubs.
Current rules do allow the single biggest investor in a club for 20 years consecutively to apply for an exemption – although these applications can still sometimes be denied.
In terms of club reactions to the Bundeskartellamt ruling, Borussia Dortmund, Schalke 04, and FC Koln, all issued statements broadly expressing support for the decision and for the rule in general.
However, Hans-Joachim Watzke, president of Borussia Dortmund and also chair of the DFL, said: "It is a significant step that the Federal Cartel Office, in its final assessment, raises no fundamental concerns regarding the [50+1] rule. We'll continue to advocate for the protection and continued existence of the rule. But a rule only makes sense if it applies equally to everyone. I'm curious about the future and remain skeptical."
Over recent years, the subject of outside investment into German soccer – under any guise – has been a controversial topic.
In early 2024, the DFL shared plans to bring in an external equity partner – which would have taken a share of up to 8% in the broadcast rights of the Bundesliga and Bundesliga 2 over 20 years, for around €1 billion – only for this scheme to ultimately be scrapped following mass fan protests.
Another aspect of this Bundeskartellamt ruling is the fact that it comes hot on the heels of media reports that the DFL has been holding talks with a US investment firm to secure a €1 billion ($1.1 billion) loan.
According to The Athletic publication, league representatives held a meeting with Apollo Sports Capital in New York in June to discuss the framework of a loan over 20 years, guaranteed against the league’s future domestic broadcasting revenue.
The report states that the proposal was not the result of any tender process, nor would it involve any transfer of equity.
Any potential agreement would also be subject to a vote among the 36 member clubs of the two Bundesliga divisions and require a two-thirds majority to be accepted.
