The regulation of investors’ influence in German professional football

Abstract

The German Football Association and the German Football League prevent investors from having controlling influences over professional football teams. To compete in the Bundesliga, 2nd Bundesliga, 3rd League, and Regional Leagues, the Verein (non-profit organization) must control the professional football team. This is possible due to the so-called ‘50 + 1 Rule’. When comparing other top European football leagues, the ‘50 + 1 Rule’ is only being utilized in Germany. However, this rule is being increasingly criticized since it generates limitations on investors’ property rights within their professional football team. Some investigations criticize that these limitations on property rights impair investment incentives. Hence, some potential investors possibly have not invested in German football teams in the past. Taking into consideration the criticisms against the ‘50 + 1 Rule’, this paper serves as an initial investigation on the rule’s impacts from the perspective of potential investors. To empirically weigh and reveal possible investment barriers, potential investors were asked about their opinions on the ‘50 + 1 Rule’ and the rule’s future. Surprisingly, we have identified an advocacy of the rule. This finding illustrates a similarity regarding the perspective of German football clubs, as well as football fans, and a contrast regarding the perspective of current investors. Finally, our current and previous survey results form an important stakeholder-oriented base for discussion in order to assess the future decision regarding the retention or repeal of the ‘50 + 1 Rule’.