Shedding the light on Germany’s unique 50+1 ownership model

Football in Germany enjoys widespread popularity due to its top-tier play, the highest average attendances in world football, affordable ticket prices, and a vibrant fan culture. A significant factor contributing to this is the 50+1 ownership rule.

Borussia Dortmund CEO Hans-Joachim Watzke famously once said in 2016 via the Bundesliga website:

“The German spectator traditionally has close ties with his club, and if he gets the feeling that he’s no longer regarded as a fan but instead as a customer, we’ll have a problem.”

The 50+1 rule safeguards this – the rule refers to the requirements that club members hold 50 percent plus one additional vote of the voting rights to ensure a majority. Essentially, it means that clubs, and consequently, the fans retain the final say in their management, rather than external influences or investors.

According to the German Football League (DFL) regulations, football clubs are prohibited from participating in the Bundesliga or the second division if external investors hold the majority control.

Essentially, this means that private or commercial investors cannot take control of clubs and implement measures prioritising profit over supporters’ interests. The regulation protects against irresponsible owners and preserves the democratic traditions of German clubs.

Historically, German football clubs were non-profit institutions managed by member associations, and private ownerships was entirely prohibited until 1998. The introduction of the 50+1 rule that year helps explain why debts and wages are kept in check and why ticket prices remain significantly lower compared to other major European leagues.

It should be noted that clubs have adapted to these changes in different ways, resulting in various forms of member ownership. Many Bundesliga teams are legally structured as limited or joint-stock companies, established as subsidiaries of the main club, which often includes other sports departments and/or women’s teams, to manage the men’s first team. Some of these companies are even publicly traded. Clubs in leagues below the DFL-regulated Bundesliga and Bundesliga 2 also follow similar approaches, partly to ensure compliance in the event of promotion.

Using Bayern Munich as an example, the shareholders of the men’s first team (FC Bayern München AG) are the members’ club (FC Bayern München e.V. – 75%), Adidas (8.3%), Allianz (8.3%) and Audi (8.3%). With Bayern’s now 300,000+ members being the largest membership of any sports club in the world, it is not difficult to comprehend why they are one of the well structured football clubs in the world, by primarily being debt-free which German clubs are.

In Germany, discussions of financial issues or Financial Fair Play violations are virtually non-existent, whereas news of economic struggles and FFP sanctions is common in other European leagues.

German football fans have turned their passion for football and for their clubs into power and forcing change whenever they are not content with a decision such as when the DFB confirmed that Bundesliga football would be televised on Monday night, fans boycotted the initial Monday night matches, it was then cancelled by the DFB.

While private investment could elevate German football to new heights, the fans are opposed to it.

It’s the fans and their principles that make football in Germany so special. The 50+1 rule may appear outdated in the modern era, but it’s a model that many fans have advocated for in other places. Football is for the fans, and in Germany, things are as they should be.

The 50+1 rule would greatly benefit the decisions and the structure of football in the Isuzu UTE A-League men’s and Liberty A-League women’s with all the controversy that has plagued the game over the years. If there is transparency and communication between member fans and the clubs hierarchy, it would put the priority of fans to the top as they are the most important aspect of where the revenue comes from and would improve the decision making process.

For members of an A-League team, they are essentially ticket holders with some additional rights and privileges that non-members lack. However, these do not involve any participation in the club’s management.

From the football landscape in Australia where the fans are often unhappy with the relationship between them and their club’s ownership, German football seems to have got that blend working positively.

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A-League should heed Dynamic Ticketing issues

Dynamic Ticketing is seen as a new revenue builder by struggling clubs in Europe needing to inject more funds into their clubs. However, the backlash reported by supporters worldwide should make clubs think twice about this divisive option.

Dynamic Ticketing is a system that gives tickets adaptable prices based on demand. The most recent upheaval on this system has come from the Oasis reunion tickets, where fans have queued up for hours expecting tickets to be $292.39 only in a few hours, skyrocketing to $699.38.

This has caused outrage and even opened an investigation by the UK’s Competition and Markets Authority.

The footballing world has recently been riddled with ticket price controversy. Aston Villa fans raised concern at the prices of their Champions League tickets for their first return to competition since its earlier iteration, the European Cup, which they competed and won in 1982, 42 year ago.

A Champions League home ticket for Aston Villa has been increased form the cheapest non-season home tickets at $167.37 AUD rising up to $191, with a discounted price for season ticket holders ranging from $137.83 to $163.43. This comes at a 55% increase for non-season holders and 21% increase for season ticket holders from the clubs official cheapest ticket bracket of $108.

This decision has been defended by Aston Villa’s president of business operations Chris Heck saying that the financial problems facing the club and fears of Financial Fair Play (FFP) stepping in have made the ticket increase a viable option.

Other clubs such as 2023/24 Premier League champions Manchester City prices range from $74 to $123. Liverpool, 6 time champions league winners charge $59 to $120.

Valencia and Celta Vigo have taken it a step further by already imposing dynamic pricing onto its game tickets explaining prices will rise closer to the date of the game based on demand.

From a business point of view, clubs losing revenue see Dynamic Ticketing as an easy cash stream back into the club.

It is no lie that the A-league is under a strain financially, with little respite in sight. The league’s attractiveness as a business venture is vastly diminishing.

Ticketing for the A-leagues has much more financial importance than other more lucrative leagues in Europe. Also, it is worth mentioning that dynamic ticket price range would be substantially smaller than the larger supported and wealthier European clubs and leagues.

A more financially stable league would presumably result in more quality signings and revenue injected into youth development and infrastructure.

The negative effects for the fanbases, however, are glaring.

Supporters are not blind to the recent worldwide football news and know that fan’s frustrations at rising prices and where this profit goes, often falls on deaf ears. These same people could be the first to be hit hard.

The clubs in Spain that have imposed Dynamic Ticketing have caused uproar by their respective fans and other fan bases around the country. It has also soured an already fraught relationship between supporters and club owners.

Many view it as blatant greed, that they treat fans as customers and not as supporters important for the dynamic of the club.

The stage of development that Australian football is currently at means the fans have an important impact on the club’s activity. The popularity of leagues such as the Premier league or even La Liga club management see the benefits outweighing the negatives. This room for decision does not correlate with the popularity of the sport in Australia.

Football clubs should be finding angles to increase attendance and not increasing prices that could minimise interest in matches, with the cost-of-living crisis taking a hit to the public, individuals are thinking twice on where to spend their money.

Big games such as derbies draws in the largest attendance, with last season’s Sydney derby drawing in 28,152 and 27,998 for respective home and away games. Wellington Phoenix’s top of the table clash against Melbourne Victory back in May had the largest attendance at 33,297.

These type of games would be the key moments for Dynamic Ticketing and an increases in prices. The argument is that increased prices could cause less attendance for the casual viewer and an increase of season tickets pricing.

The not as important games could also be effected if they seem to increase in price. This has been mentioned by many fan groups as an increasing occurrence from worldwide clubs struggling with ticket prices.

The A-league clubs must still be realistic with their push to gain more support for football in Australia’s saturated sporting environment.

Australia is no stranger to successful rises in domestic league viewership and stadium-goers.

The 2023 FIFA Women’s World Cup is recorded to have helped garner a big increase in casual viewers to regular supporters for domestic leagues.

It’s possible this profit-building option in Australia could backfire tremendously and impact the league’s development and fan numbers. Something it cannot afford, quite literally.

The league needs more investment there is no denying that, but this volatile option could do more harm than good for Australian football.

PFA’s Rita Mankowska underscores the Player Development Program’s importance

The PFA has recently released their 2024 annual Player Development Program (PDP) report highlighting their achievements in supporting players as they navigate their lives within the world of football.

In an interview with Soccerscene, Rita Mankowska, the PFA Head of Player Development, discusses the recent PDP report, coaching development, and much more.

What are the major feelings and thoughts about the recent report in the PFA?

Rita Mankowska: It’s always satisfying reflecting on what the program has achieved and how we have been able to support our members on a collective level, but also individually.

We now have over 1,000 members who can connect to the program, and everyone has different needs for our resources. So that’s a thousand different potential ways the PFA can support each individual, which keeps our team busy, but also gives us great satisfaction too.

The growth of the program is strategic as we’re always looking at new ways, we can enhance the PDP. But it is also a response to the increase in players seeking our services. So, our job is really to respond to and meet those demands, so that every player is supported. The players rated their satisfaction with the program at 97%, which is a good indication that we are meeting their needs.

How has the increase in membership impacted the PDP?

Rita Mankowska: The expansion in membership is due to two reasons: the re-inclusion of Central Coast Mariners in the A-League Women and the growth of our Past Players Program.

The program will increase again with the inclusion of Auckland FC, and we have recently appointed Kirsty Yallop as Auckland’s Player Development Manager to help support the players at the new A-League Men’s team for the forthcoming season.

An increase in membership ultimately results in a greater number of players accessing the Program’s resources, so we have had to ensure regular quality improvement initiatives to ensure the ongoing success of the program.

For the last five years we have added more support staff, we survey players frequently on the Programs they want us to invest in and means test programs to ensure that our core services are meeting the changing demands of our growing membership.

Do any of the results reflect a significant change in the footballing community and the PFA?

Rita Mankowska: A trend we are currently experiencing is the increase of Australian female footballers heading overseas for employment opportunities.  All overseas players have a PFA Player Development Manager; however, this trend led us to form a partnership with Sporting Chance Clinic UK to bolster our existing Mental Health Referral Network and provide additional coverage for members based overseas. Through Sporting Chance, players based in a different time zone can access mental health support.

Tell us about the rise in mental health and well-being support in the PDP what does that tell you about your work and the current climate?

Rita Mankowska: We have experienced a significant increase in the number of confidential counselling sessions accessed by our members over the last five years. While it’s hard to pinpoint the exact reasons behind this trend, it’s likely down to several factors including the de-stigmatisation of mental health in society, general word of mouth between members and a high level of promotion of the service from PFA staff.

Despite the increase, numbers are still in keeping with national averages for those suffering from and seeking assistance for mental health support.

Coaching development and workshops have been important in this PFA. Why has the PFA focused on this and what positive results come from this work?

Rita Mankowska: Over the last two years we have worked closely with Football Australia’s coach education team to try to reduce the barriers of entry for current and past players to develop into coaches.  Thankfully, our efforts have paid off as players have taken advantage of the reduced face-to-face contact hours in AFC Coaching courses, which recognise professional players’ prior knowledge of the game.

We had over 70 current and potential members registered across B and C Diploma courses and held a goalkeeper B Diploma in collaboration with Football Australia for the first time.

With players transitioning into professional coaching roles in growing numbers, we saw an important opportunity to facilitate and subsidise coaching licences.

With regards to skill development workshops, players welcomed the return of these following a hiatus during COVID, showing that face-to-face learning is still an important way to impart knowledge to our members.

How will these results in the recent PFA affect the future season and activity of the PFA?

Rita Mankowska: Moving forward, we will continue to strive to achieve our mission which is to support players with their careers, well-being and retirement via high-quality, evidence-based programs and services.

What are some of the goals the PFA are striving for now after the PDP report?

Rita Mankowska: We compile the annual PDP report for two core reasons; firstly, to ensure that we can demonstrate to the clubs and Football Australia the program’s impact, as the funding for the program comes via our collective agreements with the Leagues and governing body, and, secondly, so we can assess and refine the program. So, our immediate focus will be on assessing our programs and then enhancing them heading into a new A-Leagues season.

Rita Mankowska and the PFA’s hard work in this report identifies matters that hit home with footballers and showcases their drive to achieve more in the coming years, to the benefit of all.

To read more of the report, click here.

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