An Analysis of German Football's 50+1 Rule & the Federal Cartel Office's Concerns

German football is often regarded as a stronghold of footballing tradition due to its strict ownership rules. However, after the Federal Cartel Office (FCO) published its latest (preliminary) assessment of the rules, this cornerstone of German football stands at a crossroads. While the FCO has not raised antitrust concerns regarding the current rules as such, it sees the need for several improvements to ensure compliance with EU antitrust law. Not only does the FCO criticise that the current rules are not consistently applied and enforced, but it also raises concerns regarding exemptions granted to clubs like Bayer Leverkusen 04 or VfL Wolfsburg and wants to close certain loopholes allowing for additional influence in clubs by investors despite ownership limitations. With the FCO’s list of concerns, the Deutsche Fußball Liga e.V. (DFL – the German football league responsible for organising and managing the top two professional football leagues in Germany, the Bundesliga and the 2. Bundesliga) is now on the verge of a major reform of its rules.

This article provides an overview of the background and complexities of the German football club ownership rules; the newly raised concerns of the FCO; and how they may affect German football going forward.

Article Outline

• The 50+1 Rule: Background and Rationale
• Chronology of the FCO Proceedings
  • Initial Consultation
  • Preliminary Assessment and Concerns
  • Procedural Developments and Impact of recent CJEU Decisions
  • Revised Assessment Following CJEU Decisions
• The Identified Shortcomings of the 50+1 Rule
  • Club Character and Member Participation
  • Consistent Application, Licensing Practice and Voting Process
  • Benefactor Exemption
• Next Steps