Football clubs Leverkusen and Wolfsburg Investors Demand: DFL Needs to Enhance Its Operations
Let's chop it up about the 50+1 rule in German football
The Federal Cartel Office has issued guidance to the DFL (German Football League) regarding the 50+1 rule, aimed at improving its implementation, particularly for Bayer Leverkusen and VfL Wolfsburg— clubs currently exempted by their corporate sponsors.
However, other clubs like RB Leipzig and Hannover 96 are also under the microscope.
"Time to straighten up, DFL!" says Andreas Mundt, head honcho at the Federal Cartel Office. He notes that changes to the grandfathering rules for former sponsorship clubs must be improved to meet European case law standards. While the Federal Cartel Office does not object to the ongoing procedure, it urges the DFL to take concrete steps to ensure a legally sound application of the rule in the future.
The DFL, affected clubs, and investors have been given the opportunity to share their opinions. Afterward, the Federal Cartel Office intends to finalize its suggestions and wrap things up. The DFL executive committee will evaluate the assessments promptly. In 2018, the DFL reached out to the office in search of legal certainty.
Bye-bye to permanent exemptions for Wolfsburg and Leverkusen?
In 2023, the DFL and the Federal Cartel Office agreed to update the controversial 50+1 rule, which prohibits investors from acquiring a majority of the shares in a club's capital companies. However, exceptions currently apply to VfL Wolfsburg and Bayer Leverkusen. The office now believes that it's impossible to provide permanent exemptions for clubs that have received sponsorship exemptions under the new European Court of Justice (ECJ) rulings.
Leverkusen has longstanding ties with Bayer AG, which influenced the exemption granted under the rule implemented in 1999.
Meanwhile, Volkswagen received an exemption for VfL Wolfsburg in 2001. In 2015, TSG 1899 Hoffenheim also received an exception, but the club returned to the regular 50+1 structure at the end of 2023.
Cartel Office throws the DFL under the bus
Mundt expressed his belief that the DFL should ensure equal competitive conditions by consistently enforcing and applying the 50+1 rule without discrimination. Hans-Joachim Watzke, a DFL spokesperson, acknowledged the association's commitment to safeguarding the rule and expressed the intention to find collective solutions for its protection and preservation.
Wolfsburg inconsolably bemoaned the authority's apparent change of heart. They argue that the new interpretation fails to justify the reversal and reserve all possible legal options. Leverkusen officials echoed similar sentiments, suggesting they would reassess the facts and legal position in collaboration with the DFL and relevant stakeholders.
Open membership for RB Leipzig demanded
Mundt subtly urged the DFL to prioritize open access to club membership, including fan representation for all Bundesliga and second-division teams, and to consider interpretations of the 50+1 rule in their decision-making.
RB Leipzig, a club closely associated with Red Bull GmbH, raised eyebrows among German fans with its questionable compliance. Despite nominally adhering to the rule, RB Leipzig's structure has sparked concerns over the minimal influence of outside members.
At Hannover 96, tensions have persisted between the club and the capital side due to the ongoing power struggle between long-time president and CEO, Martin Kind (81), and investors. Hannover 96's executive team directed Kind to vote against the entry of an investor at the DFL, although Kind's compliance with this instruction remains unconfirmed.
In essence, the German Football League is under pressure to adapt to the Cartel Office's stipulations, potentially doing away with exceptions for Leverkusen and Wolfsburg, tightening up on RB Leipzig, and maintaining the democratic spirit of the 50+1 rule across all clubs. The ultimate goal is to keep fan ownership central to the German football experience.
- In an effort to ensure consistency in applying the 50+1 rule in German football, the Federal Cartel Office suggests eliminating permanent exemptions for clubs like Bayer Leverkusen and VfL Wolfsburg, as these exemptions may not meet European case law standards.
- The Federal Cartel Office, in their guidance to the DFL, emphasizes the importance of open membership for all Bundesliga and second-division teams, including fan representation, as a means to preserve the democratic spirit of the 50+1 rule.
- Amid calls for open membership, RB Leipzig, a club linked to Red Bull GmbH, faces scrutiny over its questionable compliance with the rule, raising concerns about minimal influence of outside members in the club's structure.
