Understanding the 50+1 Rule in German Football
Understanding the 50+1 Rule in German Football
By Edcel Panganiban July 09, 2024 22:05
The 50+1 rule is a clause in the Deutsche Fußball-Liga regulations concerning Bundesliga football. The league requires clubs wanting to play in the Bundesliga or top-level Division 2 to own at least 50% +1 of the shares. Owning at least 50% +1 of the shares ensures they have majority control so that any potential outside investor knows who runs their club.
Background and Context
The 50+1 rule was born out of the Bundesliga boom in the mid-1990s and aimed to make German football more professional. This forced the breakup of senior football into its own companies, with set provisions that gave AM members majority shareholdings and voting rights in any new entity.
Details & Requirements
Shareholders are elected to the board. They have supervisory boards rather than 'regular' company boards, as with clubs elsewhere. Chairpersons and directors must also be club members. This prevents any one investor from owning more than a quarter of the side and ensures that control can never be wrested away entirely by the business.
Purpose and Intended Effects
The prime objective of the 50+1 rule is to secure a continuance of the old fan-club relationship and prevent any disencumbranced external influence by having club members holding ultimate power.
Application in Practice
A few exceptions have allowed individuals or companies to own a significant majority if they invested considerable amounts in the club for at least twenty years. Still, this rule was only fully put into practice. Some examples are Bayer 04 Leverkusen, VfL Wolfsburg, or the takeover of Software company SAP co-founder Dietmar Hopp at TSG1899 Hoffenheim.
Impacts and Effectiveness
The 50+1 rule has also been criticized since, with clubs such as RB Leipzig emerging over the past few years and football governing bodies coming under scrutiny for failing to provide adequate democratic oversight or protection from external investors.
The 50+1 rule in German football, however unique it may be to the traditional fan-club relationship and constraining of outside influence, the implementation and success are still being debated in legal cases and football practice, and opinions have been divided across professional German football.
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