This piece of work analyses the legal and statutory environment for investments in football clubs in Germany, as opposed to the situation in England. Whereas German regulations limit the acquisition of shares of football clubs, the legal framework is much more liberal in England. The paper looks at the potential conflicts of interest involved with club ownership issues as well as at the arguments for and against the German “50 plus 1” rule and how this rule may cause a shortfall in competitiveness as compared to English football. Finally, the dissertation looks at doubts over the lawfulness of the rule in relation to European antitrust legislation and doubts over its effectiveness concerning legal loopholes provided by German corporation law.
The paper relied predominantly on the analysis of literature concerning the regulation of club ownership in England and Germany, whereas a significant amount of German literature was used.
Essentially, the research found that there is reason for severe scepticism about both the lawfulness and the effectiveness of the “50 plus 1” rule. It would probably not bear up against a test before the European Court of Justice. There are several opportunities in German corporate law to circumvent the rule.
Finally, the paper urges the German Football Association (DFB) to consider a softening of the regulations currently in place, and effective modifications of the underlying licensing system, respectively, as well as the introduction of supporters’ trusts and fit and proper person tests. Finally, the paper claims that competitive balance on a European club level can only be restored if club ownership issues are resolved on a European level.
Inhaltsverzeichnis (Table of Contents)
- 1. INTRODUCTION
- 1.1 Terms and definitions
- 1.2 Scope of this dissertation
- 1.3 Drivers of club ownership
- 1.4 Limited comparability of English and German football
- 1.5 Limitations to free trade with football club shares
- 1.6 Overview of the chapters of this dissertation
- 2. RESEARCH QUESTIONS
- 3. RESEARCH PROCESS AND METHODOLOGY
- 4. LITERATURE REVIEW
- 4.1 Literature related to football club ownership
- 4.2 Literature related to the lawfulness and effectiveness of rules regulating football club ownership
- 5. COMPARISON OF THE STRUCTURES FOR PROFESSIONAL FOOTBALL IN ENGLAND AND GERMANY
- 5.1 General remarks
- 5.2 The structure of English football clubs
- 5.2.1 The predominant legal forms for football clubs in England
- 5.2.2 History of legal forms for football clubs in England
- 5.2.3 English rules related to football club ownership
- 5.2.4 Financial performance of English football
- 5.2.5 Threat from external investors
- 5.3 The structure of German football clubs
- 5.3.1 Significance of tradition
- 5.3.2 Financial aspects of German football
- 5.3.3 The human factor
- 6. POTENTIAL CONFLICTS OF INTEREST IN CONNECTION WITH CLUB OWNERSHIP
- 6.1 The rat race
- 6.2 Potential conflicts of interest in case of the absence of rules limiting club ownership
- 6.3 Conflicts of interest in relation between English and German football
- 6.4 Conflicts of interest among the stakeholders of a football club
- 6.5 Protection of competition or competitors?
- 7. THE GERMAN “50 plus 1” RULE
- 7.1 Definition, history and purpose of the “50 plus 1” rule
- 7.1.1 Membership associations
- 7.1.2 The governance vacuum within membership associations
- 7.1.3 Spin-off of football branches
- 7.1.4 Exception to the “50 plus 1” rule
- 7.1.5 Purpose of the "50 plus 1" rule
- 7.1.6 Capability of the rule to safeguard its intentions and possible circumventions
- 7.1.6.1 Main arguments in favour of the “50 plus 1” rule
- 7.1.6.2 German football clubs as investment targets
- 7.1.6.3 Main arguments in opposition of the “50 plus 1” rule
- 8. MODIFICATIONS OF THE "50 plus 1" RULE AND ALTERNATIVE SOLUTIONS
- 8.1 Modifications of the "50 plus 1" rule
- 8.1.1 Extension of the licensing system
- 8.2 Alternative solutions
- 8.2.1 Supporters' involvement
- 8.2.2 A "Fit and Proper Person Test" for Germany?
Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)
This dissertation aims to compare the legal and regulatory environments for investment in football clubs in Germany and England, focusing on the differences between the restrictive German regulations and the more liberal English framework. It analyzes potential conflicts of interest arising from club ownership issues and examines the arguments for and against Germany's "50 plus 1" rule, exploring its impact on competitiveness relative to English football. Finally, it assesses the rule's legality under European antitrust legislation and its effectiveness in light of potential legal loopholes.
- Comparison of football club ownership regulations in England and Germany.
- Analysis of the "50 plus 1" rule in German football, including its legal and practical implications.
- Examination of potential conflicts of interest related to football club ownership.
- Assessment of the competitiveness of German football in a European context.
- Exploration of alternative solutions and modifications to existing regulations.
Zusammenfassung der Kapitel (Chapter Summaries)
1. INTRODUCTION: This introductory chapter sets the stage for the dissertation by defining key terms, outlining the scope of the research, identifying the drivers of club ownership, and highlighting the limitations in directly comparing English and German football due to their structural differences. It also acknowledges limitations to free trade regarding football club shares and provides a roadmap for the subsequent chapters.
4. LITERATURE REVIEW: This chapter synthesizes existing literature related to football club ownership and the legal and effective aspects of regulations governing this ownership. It lays the groundwork for the comparative analysis in later chapters by establishing a theoretical framework informed by previous research on the topic.
5. COMPARISON OF THE STRUCTURES FOR PROFESSIONAL FOOTBALL IN ENGLAND AND GERMANY: This chapter presents a detailed comparison of the structures of professional football in England and Germany. It explores the legal forms of football clubs in each country, tracing their historical development and analyzing the relevant regulations regarding club ownership. Key differences in financial performance, the role of external investors, and the cultural significance of tradition within each football system are also highlighted. The chapter sets the context for a deeper investigation into the contrasting approaches to club ownership and their consequences.
6. POTENTIAL CONFLICTS OF INTEREST IN CONNECTION WITH CLUB OWNERSHIP: This chapter delves into potential conflicts of interest stemming from various aspects of football club ownership. It explores scenarios where the absence of ownership limits creates conflicts, examines the interconnectedness of conflicts between English and German football systems, and analyzes potential conflicts among stakeholders within a single club. The chapter further analyzes the inherent tensions between protecting competition and individual competitors within the broader context of club ownership structures.
7. THE GERMAN “50 plus 1” RULE: This chapter provides a thorough examination of the German "50 plus 1" rule, detailing its definition, history, and purpose. It explores the rule's intended function within the framework of membership associations and addresses the complexities of its implementation. The chapter thoroughly analyzes arguments for and against the rule, considering its potential circumventions and the impact on German clubs as investment targets. This analysis prepares the ground for the discussion of modifications and alternatives in the next chapter.
8. MODIFICATIONS OF THE "50 plus 1" RULE AND ALTERNATIVE SOLUTIONS: This chapter explores potential modifications to the existing "50 plus 1" rule and examines alternative solutions to address the challenges it presents. It explores the possibility of extending the licensing system, enhancing supporter involvement through trusts, and introduces the concept of a "fit and proper person test" for German football. The chapter concludes by suggesting that a truly effective resolution of club ownership issues requires a Europe-wide approach to maintain competitive balance.
Schlüsselwörter (Keywords)
Football club ownership, German "50 plus 1" rule, English football, German football, European Union competition law, conflicts of interest, stakeholder analysis, financial performance, investment regulation, supporters' trusts, competitive balance.
Frequently Asked Questions: A Comprehensive Language Preview of Football Club Ownership in England and Germany
What is the main topic of this dissertation?
This dissertation compares the legal and regulatory environments for investment in football clubs in Germany and England, focusing on the differences between the restrictive German regulations and the more liberal English framework. It analyzes the "50 plus 1" rule in Germany and its impact on the competitiveness of German football compared to England.
What are the key themes explored in this dissertation?
Key themes include a comparison of football club ownership regulations in England and Germany; analysis of the "50 plus 1" rule, including its legal and practical implications; examination of potential conflicts of interest; assessment of the competitiveness of German football; and exploration of alternative solutions and modifications to existing regulations.
What is the "50 plus 1" rule, and why is it important?
The German "50 plus 1" rule mandates that member associations retain at least 50% plus one vote in their football clubs. It aims to maintain traditional club governance and prevent investor takeovers that might prioritize profit over sporting success. The dissertation examines the rule's history, purpose, effectiveness, potential circumventions, and its legality under EU antitrust law.
How does the English football club ownership structure differ from the German one?
The English system is significantly more liberal than the German system, allowing for greater external investment and potentially leading to higher financial performance but also to risks such as investor-driven short-term decisions and potential conflicts of interest.
What are the potential conflicts of interest discussed in this dissertation?
The dissertation explores various potential conflicts of interest, including those arising from the absence of ownership limits, conflicts between English and German football systems, and conflicts among stakeholders within a single club (e.g., owners, managers, players, fans). It also addresses the tension between protecting competition and individual competitors.
What alternative solutions or modifications to the "50 plus 1" rule are considered?
The dissertation explores potential modifications like extending the licensing system and alternative solutions such as enhancing supporter involvement through trusts and introducing a "fit and proper person test". The conclusion suggests a Europe-wide approach might be needed for a truly effective resolution.
What is the scope of the literature review?
The literature review synthesizes existing research on football club ownership and the effectiveness of regulations governing it, providing a theoretical framework for the comparative analysis of the English and German systems.
What methodologies are used in this dissertation?
The dissertation uses a comparative approach, analyzing legal frameworks, financial data, and relevant case studies to contrast the English and German football systems. It also employs stakeholder analysis to examine potential conflicts of interest. The specific research process and methodology are detailed in a dedicated chapter.
What are the key findings or conclusions of this dissertation?
The dissertation's key findings will likely center on the trade-offs between financial success and traditional club governance, examining the effectiveness of different regulatory approaches, the potential impacts of the "50 plus 1" rule, and the need for a balanced approach to regulation that considers both financial sustainability and the long-term interests of the clubs and their fans. The precise conclusions are presented in the final chapters.
What are the keywords associated with this dissertation?
Keywords include: Football club ownership, German "50 plus 1" rule, English football, German football, European Union competition law, conflicts of interest, stakeholder analysis, financial performance, investment regulation, supporters' trusts, competitive balance.
- Arbeit zitieren
- Dr. Max Kindler (Autor:in), 2008, Football Club Ownership in England and Germany , München, GRIN Verlag, https://www.hausarbeiten.de/document/120479
