Bundesliga’s 50+1 ownership rule permissible under antitrust laws, competition authority says
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BERLIN, Aug 12 : The Bundesliga’s 50+1 ownership rule that blocks major investors from taking over control of clubs in the top two German leagues is permissible under current antitrust laws, the country’s federal competition authority Bundeskartellamt said on Wednesday.
The rule has been in place for more than a quarter of a century and means clubs – and, by extension, their fans – hold a majority of voting rights, protecting against single investors coming in and buying a controlling stake at clubs as is the case in Spain, Italy, France or England.
There are some exceptions, such as factory-owned clubs Bayer Leverkusen and VfL Wolfsburg as well as Red Bull-owned RB Leipzig. The rule is hugely popular among fans of many clubs, but critics say it stops necessary investment to fuel football growth and keep German football competitive with the other major European leagues.
“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,” said Bundeskartellamt President Andreas Mundt in a statement. “However, this is contingent upon the rule being applied consistently and without unjustified distinctions.”
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He said clubs had to ensure the rule was applied in membership and participation access.
The Bundeskartellamt proceedings were launched at the request of the German Football League (DFL) in charge of the top two divisions, and eager to legally bolster the rule against any future antitrust law challenges.
“The Executive Board… feels its fundamental stance has been reaffirmed,” the DFL said in a statement. “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.”
Under current rules investors who are the single biggest financial contributors over 20 consecutive years can apply for an exemption from the 50+1 rule. The most recent high-profile case was that of Hannover 96 main investors and president Martin Kind’s request in 2018, which was denied.
“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,” Mundt said.
“Our evaluation outlines the antitrust framework within which, in our view, the 50+1 rule can be applied with the greatest possible legal certainty.”
Source: Reuters
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