50+1 rule
The 50+1 rule (German: 50+1-Regel) is an informal term used to refer to a clause in the regulations of the Deutsche Fußball-Liga. The clause states that, in order to obtain a license to compete in the Bundesliga, a club must hold a majority of its own voting rights. The rule is designed to ensure that the club's members retain overall control, protecting clubs from the influence of external investors.
Background
Prior to 1998, football clubs in Germany were owned exclusively by members' associations.[1] This meant that clubs were run as not-for-profit organisations, and private ownership was not allowed under any circumstances.[2] This changed following a ruling by the German Football Association (DFB) in October 1998, which allowed clubs to convert their football teams into public or private limited companies. However, the "50+1 rule" requires the parent club to own at least 50% plus one additional share of the football company, ensuring that the club's members still hold a majority of voting rights.[3]
Exceptions
In cases where a person or company has substantially funded a club for a continuous period of 20 years, it is possible for that person or company to own a controlling stake in the club.[4] This exception most notably applies to Bayer 04 Leverkusen (owned by pharmaceuticals company Bayer), and VfL Wolfsburg (owned by automobile manufacturer Volkswagen).
Criticism
The rule has been criticised on a number of occasions. One of the rule's most vocal opponents is Hannover 96 president Martin Kind, who argued that the rule could be in breach of EU competition law.[5] In 2009, Hannover put forward a motion to change the 50+1 rule, but this was overwhelmingly rejected, with 32 out of 36 clubs voting against the proposal.[6]
The effectiveness of the rule has also been brought into question following the rise of RB Leipzig. Although it is possible to become a club member, the membership fee is prohibitively expensive, and the club reserve the right to reject any application without a reason. As a result, the club has only a handful of members, most of whom are Red Bull employees.[7]
References
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