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Bundesliga Debating Changing 50+1 Ownership Rule

Germany's top football teams are discussing plans to "sweep away rules prohibiting foreign investors from owning Bundesliga clubs," amid concerns they "lack the financial firepower to compete against rivals" in the Premier League and La Liga, according to Murad Ahmed of the FINANCIAL TIMES. German Football League (DFL) CEO Christian Seifert said that his organization "opened a debate" about changing the "50+1" ownership rule that means club members must hold the majority of voting rights. In effect, the rule bars commercial entities from owning more than 49% of German clubs "in most circumstances." The regulation, "unique to German football," has contributed to a "fan-focused culture, helping to ensure low ticket prices and the highest average match day attendances in world football." Yet, there has been "frustration at boardroom level," as the rule has "dissuaded wealthy individuals and corporations from investing in German clubs because they cannot gain a controlling stake." Seifert said, "We need to start an honest discussion ... about the 50+1 rule. We need at least to figure out if between radical positions -- keep the market as it is, or blow it away and open up the market completely -- there is a way in between." Ben Marlow, an exec at football consultancy 21st Club, said, “When I’ve had conversations with potential investors, the 50+1 rule has been something that has clearly prevented them looking at Germany. [If the rule changed], I would expect to see a few takeovers in the reasonably short term” (FT, 2/15).

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