Demanding Changes in Football Investment: FCO Slams DFL Over Exemptions for Leverkusen and Wolfsburg
- Let's get straight to it!
Bundesliga clubs Bayer Leverkusen and VfL Wolfsburg demand enhancement from the DFL (Deutscher Fußball-Bund), Germany's Football Association, due to significant issues overlooked in the league's management. - Enhancements for Leverkusen and Wolfsburg: DFL requires advancements to ensure fair competition in German football.
The German Federal Cartel Office, headed by President Andreas Mundt, has criticized the DFL for the exceptions granted to Bayer Leverkusen and VfL Wolfsburg. RB Leipzig and Hannover 96, currently in the second division, are also under investigation.
Mundt asserted that the DFL must revamp its plans for modifying the grandfathering rules for former sponsor clubs, as current European case law sets a strict standard.
Though an end to the seven-year-long review process is in sight, the Bonn authority expressed concerns about the lawful application of the rule in the future. However, they acknowledged no fundamental issues in their interim decision.
Following this, the DFL, involved clubs, and investors can share their opinions. The Federal Cartel Office will then finalize its suggestions and conclude the case. The DFL board will carefully consider the assessments. In 2018, the DFL approached the authority for legal certainty.
"No permanent exemption" for Leverkusen and Wolfsburg
In 2023, the DFL and the cartel office agreed in principle to modify the contentious 50+1 rule. This rule prevents investors from acquiring a majority of votes in club capital companies but offers exceptions for VfL Wolfsburg and Bayer Leverkusen. Mundt noted that future grandfathering for these clubs, given the new European Court of Justice (ECJ) decisions, now seems impossible.
Bayer Leverkusen's close ties to chemical company Bayer led to a sponsorship exception for the 50+1 rule, applicable since 1999 when the rule was first introduced. Volkswagen received an exception for VfL Wolfsburg in 2001. TSG 1899 Hoffenheim had a similar exception in 2015, but the club returned to the regular 50+1 structure by the end of 2023.
"Ensuring fair competition" calls Mundt
Mundt further emphasized that the DFL must promote fair competition by applying the 50+1 rule evenhandedly. He specifically discussed the controversial cases of RB Leipzig and Hannover 96.
The FCO demands that the DFL ensure open access to membership and fan participation for all Bundesliga and 2nd Bundesliga clubs. The DFL should also consider its own interpretations of the 50+1 rule during its votes.
RB Leipzig, criticized by many German fans, has been viewed skeptically since Red Bull GmbH took over the professional department in 2014. The club practices closed membership, restricting membership determinants to itself.
Meanwhile, Hannover 96 has been embroiled in a power struggle between the club and the capital side, with president Martin Kind at the center of a long-standing tussle. Despite being instructed to vote against an investor's entry at the DFL, Kind's decision in a member meeting in December 2023 remains undisclosed. However, rumors suggest he did not comply with the instruction.
- Here's a quick glance at the key terms:
- DFL
- Football
- Federal Cartel Office
- Leverkusen
- RB Leipzig
- Wolfsburg
- Hannover 96
- VfL Wolfsburg
- Andreas Mundt
- Bayer 04 Leverkusen
- Bonn
- Fair competition
- The Commission, spearheaded by President Andreas Mundt, has not yet adopted a decision on the application of the measures provided for in Article 93 (2) of the Treaty, as the DFL must ensure fair competition in the football industry, particularly in the European leagues like the Premier League.
- The debate revolves around the exemptions for clubs such as Bayer Leverkusen, RB Leipzig, and VfL Wolfsburg, with Mundt critiquing the DFL for its inconsistent application of rules, such as the 50+1 rule, that are crucial for maintaining a balanced finance structure in football.
- Given the involvement of major finance entities like Volkswagen in VfL Wolfsburg, it is essential for the European leagues to adhere to strict standards to protect the sports integrity, promoting democratic fan participation in clubs like Hannover 96 and preserving the competitive landscape of European football.
