This article contains affiliate links. If you purchase through these links, Football Finance Lab may earn a commission at no additional cost to you.
The 50+1 rule is a cultural asset of German football and is protected by fans as best as possible. In this article we want to explain how the rule came about, what the rule encompasses, what special rules there are and what impact the rule has on German football.
Origins of the 50+1 Rule: Why Germany Chose Member‑Controlled Football
The 50+1 rule was introduced in German football in 1999. In the history of German football, the clubs were registered clubs until the 1998/99 season. In Germany, this means that the clubs are determined by their members. This means that the members of the association elect a president, who then acts as the highest chairman of the association. From the 1998/99 season, the German Football League (DFL), which is responsible for game operations and licensing in the Bundesliga, also allowed football clubs to compete as corporations as commercialization progressed. In order to limit the influence of external investors, the DFL also introduced the 50+1 rule.
If you want to understand the economic forces, cultural patterns and competitive dynamics that shape modern football, Soccernomics is one of the most insightful books available. It explains why certain nations dominate, how financial structures influence long‑term success and why the U.S. men’s team still struggles to catch up.
How the 50+1 Rule Works: Structure, Voting Rights, and Club Control
The 50+1 rule is primarily a rule for licensing by the DFL, or rather permission to participate in the first and second Bundesliga. It stipulates that any club wishing to participate must have at least 50% + one vote in the voting shares of the corporation owned by the parent club. In short, this means that the registered association, which is determined by its members, must always have a majority at meetings/decisions of the corporation with at least 50% and one additional vote. Since some Bundesliga clubs operate with a limited partnership on shares, there is another addition. The 50+1 rule does not mean that the respective parent association can hold more than 50% of the limited partnership shares and thus also sell all shares in the company. However, he must continue to retain the position of general partner through the registered association or a subsidiary controlled 100% by it. In short, the parent association can sell all shares, but must still retain the majority in determining the company. FC St. Pauli and FC Schalke 04, which we have analyzed here, are currently showing what other options there are for capital acquisition.
Special Exemptions for Factory Clubs: Wolfsburg, Leverkusen and the Hoffenheim Case
Since at the time the 50+1 rule was introduced, two so-called factory clubs, VfL Wolfsburg and Bayer 04 Leverkusen, were already in the Bundesliga, the DFL supplemented the 50+1 rule with a special rule for them. This special rule provides that clubs that have received significant support from an external donor over 20 years can be exempted from the 50+1 rule. This special rule is very vaguely worded and offers a lot of room for interpretation. Because it is not precisely defined what „subsidies in significant quantities“ are. The DFL says it did this to give itself the opportunity to make individual decisions. The DFL always has to approve the application for special approval in its licensing process.
This approval was given, for example, for the 2007/2008 season at TSG Hoffenheim, which has a patron in Dietmar Hopp, who had been supporting them for over 20 years at that time. The co-founder of SAP started when the club was still in lower-class football. Thanks to massive financial support, the club has made it to the Bundesliga and has been playing continuously in the Bundesliga since the 2008/2009 season. TSG Hoffenheim is no longer subject to the special rule, as Dietmar Hopp has officially withdrawn from the club’s business and now complies with the 50+1 rule independently. The continued influence of people close to Hopp in relevant TSG offices as well as the proximity to the games consultant Roger Wittmann and his agency Rogon remain critical here. One of the main reasons why Dietmar Hopp decided to take this step is the Federal Cartel Office’s review of the admissibility of the 50+1 rule. Starting in 2018, the Federal Cartel Office examined for three years whether the rule violated antitrust law and whether it acted in the public interest and in the interests of those affected. In 2021, it was concluded that the 50+1 rule itself is legal under German law. However, it sees a problem with the special rules. These give the clubs with special rights a competitive advantage over the rest of the clubs. The DFL is currently improving this, although it has not yet been determined how the special rule will change.
The examination by the Federal Cartel Office was requested by Martin Kind. The former chairman of the board of Hannover 96 and his club also wanted to obtain permission for the special regulation. However, this was rejected by the DFL. In response to the rejection, Martin Kind then submitted the application to the Federal Cartel Office, presumably to overturn the rule for all of German football. Martin Kind is a very controversial person in German football and is especially hated by the fans of Hannover 96. In a vote to decide whether the Bundesliga will sell revenue from future TV rights to a private equity firm to build its own streaming platform (an article on building the Premier League’s own streaming platform can be found here), Martin Kind presumably voted in favor of the sale, despite being instructed by the parent club to vote against it. This is a clear violation of the 50+1 rule because Hannover 96, as the parent club, must always retain decision-making power.
Impact on German Football: Fan Culture, Investor Limits and the Future of 50+1
The 50+1 rule has paid off especially for the fans. Ticket prices in Germany are generally very fair and significantly lower than in the other top five leagues. This is particularly due to the participation of members (club fans). In addition, the 50+1 rule ensures that in times of growing commercialization, this is not exaggerated and that there are no sole rulers in the clubs. However, the 50+1 rule only works if the rule is lived and care is taken to ensure that it is observed by all clubs. RB Leipzig is a club that is actively trying to circumvent the rule. Although the club has a general meeting and you can officially become a member, membership fees are so high that this excludes many people. The association has approximately 750 members, the majority of whom are club employees or Red Bull employees, which triggers a conflict of interest. Clubs such as SC Freiburg with 80,000 or 1. FC Köln with 160,000 members, on the other hand, have many more members, which promotes co-determination. The DFL allows RB Leipzig in its existing structures, although accessibility to membership is hardly guaranteed. A detailed analysis of Bundesliga club membership can be found here. The 50+1 rule also makes it difficult for investors to enter the respective clubs. This is because an investor may acquire part or all of the shares in an association, but he cannot determine the association alone. This ensures that investors in other leagues invest in clubs, as they enjoy full say and decision-making power there.
