50+1

 

As the world’s game, soccer has been one of the biggest markets in the world for decades. The commercialization of the game is getting more rampant every year, with governing bodies and ownership groups looking to capitalize on its lucrative interest. Unfortunately, because of rising ticket prices and wealthy investors, the diehard fan is getting phased out from the sport. But there is an exception. The German Bundesliga has maintained an elite fan atmosphere across the league even as it has grown financially. Thanks to the 50+1 rule, the Bundesliga has been able to cater to the grass roots communities that have helped the league develop into the powerhouse that it is today.

Since 1998, the 50+1 rule has been a staple of German soccer. The law has ensured that every German club must give its members a 50% stake in the team plus one extra share. Unlike in other countries where wealthy moguls are granted total authority to govern the direction of the soccer clubs, the 50+1 rule gives German fans more agency than any other soccer league in the world. The Bundesliga annually boasts one of the largest attendance figures in Europe, averaging over 38,000 attendees per match in 2024. Although the league's attendance numbers mirror the Premier League in England, in terms of ticket prices the divide is truly stark. The average price for a 1st tier Bundesliga match is approximately 24 pounds, at least 20 pounds less than the average 1st tier match in the Premier League. This has resulted in electric stadium atmospheres from top to bottom in Germany, with the diehard fan not forced to choose between matches to attend because of excessive ticket prices.

Of course, there is still plenty of corporate investment in German soccer. Some of the biggest businesses in Germany such as Allianz, Volkswagen, Audi, and plenty more have capitalized on the cash cow that is professional soccer. However, the idea of fan agency in club decisions is mostly unheard of across Europe outside of the 50+1 rule in Germany and member-owned club “socios” in Spain where fans collectively own 100% of La Liga clubs FC Barcelona, Real Madrid, Athletic Bilbao, and Osasuna. The 50+1 rule allows club shareholders, the majority of which being diehard fans, to participate in the club's governance and the direction of the club. This allows German clubs to protect the interests of their fans more than other top-flight soccer leagues such as the Premier League.

Detractors of the Bundesliga will argue that the 50+1 rule is widening the gap between German top-flight soccer and the wealthy English and Saudi leagues due to the German league’s restrictions on corporate investment. German clubs operate sustainably, spending based on their revenue and the money made from player sales rather than the exorbitant spending of billionaire owners. Despite limits on capital, German clubs are known to be some of the most well-run clubs in Europe; though the model can be limiting for many Bundesliga clubs who do not have a lot of popularity outside of Germany. In Forbes’ recent list of wealthiest soccer clubs in the world, only two German clubs, FC Bayern Munich and Borussia Dortmund, rank in the top 30. Over the past ten years, Bayern Munich has won nine league titles, in large part thanks to their overwhelming popularity compared to the rest of the teams in Germany. For other Bundesliga teams looking to challenge this dominance, it is more difficult to compete because of Bayern’s vast influence. And for a league that lacks parity, it is difficult for the Bundesliga to attract foreign fans.

The English Premier League is the antithesis of the 50+1 rule. In recent decades, the English top-flight soccer association has eclipsed leagues across Europe largely thanks to the enormous influx of investment coming from wealthy moguls in America, Russia, and the Middle East. Top English clubs have been able to accumulate some of the best talent in the world, which has enhanced their global popularity and revenue. In England, the reaction to this transition is mixed. Most fans celebrate the opportunity for their favorite club to sign the best players in the world, which has been made possible because of wealthy investors. However, the free reign of these investors has also led to many harmful decisions that are not in the best interest of the fan. Just five years ago, several of the biggest clubs across Europe agreed to form an independent Super League that met heavy backlash from the fans. German clubs Bayern and Borussia Dortmund were the only major clubs that declined to join the Super League. Although the Super League was dead on arrival, the money grab made the 50+1 rule more appealing to fans outside of Germany.

For all the success that private equity has had investing in the Premier League, many other soccer clubs across Europe have suffered because of the decisions of owners. Former European powerhouses including Lyon, Juventus, and AC Milan have all fallen significantly in recent decades thanks to poor recruitment and stingy owners who have allowed them to fall behind some of Europe's biggest clubs. In the English lower leagues, the concerns around corporate ownership have been exacerbated even further. As recently as 2019, third tier club Bury FC was expelled from the English Football League thanks to the financial mismanagement of club executives. Although fan attendance for the club was strong, supporters of Bury FC fell victim to higher up incompetence having no say in their team’s direction or management. As club owners continue to make unchecked decisions and make it more expensive for fans to attend matches, could imitating the 50+1 rule across Europe become more practical?

Notwithstanding concerns about transitioning from private ownership to fan ownership, there is plenty of optimism that the Premier League would be able to remain a financial powerhouse. All the money that owners have pumped into the game is far from the only reason for the Premier League’s dominance. As the highest quality soccer competition in the English-speaking world, the British top flight association is the most accessible league for fans across the world. The Premier League has the most popular teams, the highest paying broadcast deals, and the largest stadiums to house fans. Because of the amount of revenue generated by clubs in the Premier League, even the stingiest of owners can spend freely given that it's rarely coming from their own pockets.

Looking outside of English soccer, there already exists a model in professional sports that suggests the 50+1 rule would be successful if implemented. In the USA’s most lucrative professional sports league, the National Football League (NFL), the Green Bay Packers operate as a publicly owned nonprofit company. Although fans do not receive dividends or own appreciating stock in the team, fans love the Packers’ model because it allows them to have a say in the direction of the team by voting for positions on the Board of Directors who then exercise decisions for the club. Despite being the only NFL team with this collectivist ownership model, the Packers sit at 15th out of 32 in terms of franchise worth even though they reside in one of the smallest professional sports markets in America. Ultimately, the name brand for the Green Bay Packers holds far more weight than how deep the pockets of its owners are. For all the criticism the Bundesliga gets for having significantly lower club salaries relative to the Premier League, Bayern ranks 6th amongst club soccer teams in the world. Bundesliga clubs are not hesitant to spend, but their ability to operate within their means has set them up for long term success.

Admittedly, with the imbalanced power dynamic between owners and fans, it would be difficult to implement the 50+1 rule in England and elsewhere in world soccer. But recent history has demonstrated that the voices of fans can be a catalyst for change. The Super League debacle in 2021 resulted in club owners caving to the roaring condemnation of soccer fans across Europe, scrapping the idea within 72 hours of its announcement. In the immediate aftermath, a petition presented to the United Kingdom’s parliament reached over 100,000 signatures asking for the enforcement of the 50+1 rule. For the law to be implemented in the UK, the onus is now on the British government. Given the growing wealth gap between the Premier League and the rest of English soccer, there is certainly impetus for the government to enforce more regulation on profession soccer leagues. A model that only allows the most resource laden teams at the top to succeed will deteriorate over time. Recently, we’ve seen ticket prices soar, games move away from home stadiums for quick cash grabs, and an emphasis on the quantity of soccer over quality which has led to a spike in injuries. But it doesn’t have to continue down this track. The introduction of the 50+1 rule would help to ensure the sustainability of ALL clubs, while giving fans a more intimate and more affordable experience with their favorite soccer teams.