DFL offers commitments in the 50+1 proceeding

In the antitrust proceeding assessing the so-called 50+1 rule, Deutsche Fußball Liga (DFL) offered commitments to dispel the Bundeskartellamt’s competition law concerns.

Andreas Mundt, President of the Bundeskartellamt: “We welcome the commitments offered by DFL, which may represent an important step towards ending the proceeding. In our preliminary assessment, maintaining the basic 50+1 rule and removing the possibility of granting benefactor exemptions can
be effective in dispelling our competition law concerns. The changes result in a coherent statutory basis for the uniform application and enforcement of the 50+1 rule as called for by the Bundeskartellamt, while taking into account the sport policy objectives pursued by this rule. With the 50+1 rule DFL
intends to maintain the club character of the sport and ensure a certain even balance in sports competition. These sport policy objectives can also be recognised under competition law. In a next step, the other parties to the proceeding – football clubs and investors – are given the opportunity to comment on DFL’s suggestions.”

The assessment of the 50+1 rule by the Bundeskartellamt goes back to an initiative of DFL. In 2021 the Bundeskartellamt had reached the preliminary conclusion that the basic 50+1 rule was potentially unproblematic under competition law due to the sport policy objectives it pursues. However, the
authority considered it problematic that in its current version the rule’s uniform application and enforcement was not ensured. The assessment primarily concerned the benefactor exemption from the 50+1 rule granted by DFL in the past.

No benefactor exemptions to be granted in the future

Amending DFL’s League Statutes is a central component of the commitments presented by DFL. The basic 50+1 rule is to be maintained in the League Statutes while the possibility of granting so-called benefactor exemptions is to be dropped.

Existing exemptions to be protected only subject to conditions

DFL’s suggestions protect the benefactor exemptions previously granted to the football clubs TSG Hoffenheim, Bayer Leverkusen and VfL Wolfsburg under certain conditions, which include membership participation and the sharing of benefits, among other things.

Allowing members to participate in a way approximately similar to that of football clubs adhering to the 50+1 rule is to be achieved, according to the commitments suggested, by requiring the exempted clubs to allow members of their former parent clubs to participate and to offer them transparency
through indirect co-decision rights. This firstly involves the right of the former parent clubs to appoint members to the decision-making bodies of the exempted clubs. Secondly, the former parent clubs are to be given veto rights regarding changes to characteristic features defining the relevant club’s identity
or essence. Such changes include, for example, changes to the club’s crest, significant reductions of the standing capacities or the voluntary withdrawal from DFL competitions, namely Bundesliga and Bundesliga 2.

Sharing the benefits by paying a compensation amount as suggested by DFL is intended to compensate for structural and financial advantages in competition based on existing profit transfer agreements and the controlling investor’s sharing in losses.

The Bundeskartellamt’s proceeding is still ongoing. In a next step the other parties to the proceeding – football clubs and investors – are given the opportunity to comment on DFL’s commitments.

For more information on the Bundeskartellamt’s preliminary assessment see the press release of 31 May 2021.