Insights

Protests and the 50+1 Rule - What is all the fuß about?

3/03/2020

Saturday's meeting between 1899 Hoffenheim and Bayern Munich was…unusual. Firstly there was the emphatic 6-0 away victory for a Lewandowski-less Bayern Munich. But, more poignantly, the fixture was marred by protests against Hoffenheim's ownership, specifically targeting their billionaire owner Dietmar Hopp. This led to the match being temporarily suspended before the players of both sides passed the ball to each other for the remaining 13 minutes to run the clock down. These bizarre scenes can be seen here. Why were Bayern fans protesting Dietmar Hopp so vehemently?

The 50 + 1 Rule

German football operates a "50+1" rule - the majority of voting shares (a minimum of 51%) in each club must be retained by its 'members' i.e. fans, and therefore not by private investors, unlike the system in the UK and other parts of Europe. It's important to note that private investors can own the majority of the share capital, just not a majority of voting shares.

This traditional rule is popular in Germany because it prioritises the interests of fans. For example, ticket prices are kept low which preserves a vibrant, passionate fan culture and a level of community engagement that is envied across Europe.

Exemptions to the Rule 

The Deutsche Fußball Liga (DFL) is prepared to grant exemptions to the 50+1 rule. In essence, if an external investor can show that they have promoted football at the club substantially and continuously for more than 20 years they may apply for an exemption.

These have been granted to Bayer Leverkusen (founded by workers of pharmaceutical giant Bayer in 1904) and Wolfsburg (who have been affiliated with Volkswagen since the club was founded in 1945).

What's the fuß about Hoffenheim?

Controversially, a third exemption was granted by the DFL to Dietmar Hopp in 2015. The software billionaire's investment in Hoffenheim over more than 20 years has taken them from a tiny amateur outfit (for which he played in his youth) to a successful club in Germany's top league, the Bundesliga. Hopp now owns over 50% of the voting shares in Hoffenheim, together with 96% of the club's total capital shareholding. It's worth noting that this move was approved by Hoffenheim's members.

Fans of other German clubs are strongly opposed to this. They view Hoffenheim's significant growth and success as a direct result of financial investment, unlike Bayer Leverkusen and Wolfsburg whose success has grown organically from teams of company workers.

And RB Leipzig?

Perhaps more controversially still is RB Leipzig. They haven't been granted an exemption by the DFL; rather they have circumvented the 50+1 rule. Its members have 100% of the voting rights, but the club only has 17 members eligible to vote, all of whom are either employed by or closely connected to Red Bull GmbH (who own 99% of the club's total share capital). The club therefore comply with the Rule, but not with its spirit.  

What next?

There has been wide condemnation of such protests witnessed on Saturday. It will be interesting to see if the DFL/German clubs do shift their stance on private ownership in the coming years, as competing financially with other clubs in world football is becoming increasingly difficult for the majority of German clubs.

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This is a microcosm of the debate which has been brewing and bubbling away in German football for ages - tradition being rolled over by the new wave of money.

https://www.bbc.co.uk/sport/football/51690403
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