Time to abandon the Sonderweg says Leverkusen chief

It is a general characteristic of public policy debate in Britain to see Germany as an example from which lessons can be drawn. This is understandable given the success of the German economy and the way in which, for example, developed systems of training that have produced high levels of skill. Modell Deutschland had to deal with the challenges of unification, Europeanisation and the Eurozone crisis, unprecedented levels of immigration by refugees, globalisation and the rise of far right parties and at times it has looked fragile. Nevertheless, it has largely survived and Germany was widely praised for its response to Covid-19 while the German economy and German soccer made a relatively rapid recovery which has now subsided whilst the traffic light coalition government is seen as divided and weak.

Replicating the 50+1 rule in England (confining outside investors to a minority stake in most clubs) attracts considerable support, but its translation to a different environment is not the straightforward, readily applicable solution presented by its advocates. (For an extended discussion, see my book Political Football).

German football should ditch its ownership rules and allow investors to buy majority stakes in clubs to make the game more exciting and build an international following, says the chief executive of current league leaders Bayer Leverkusen. The so-called 50+1 rule limits the involvement of outside investors in German football by ensuring that club members retain control of their teams.

Leverkusen, which is owned by chemicals company Bayer, is one of a handful of exceptions. Speaking ahead of a crucial clash on Saturday against second-placed Bayern Munich, Fernando Carro told the Financial Times that German teams should be allowed to bring in new shareholders to make the league less predictable and more entertaining for viewers.

Other countries, such as England, France and Italy, have welcomed international capital into domestic football — from US billionaires and private equity firms to Gulf sovereign wealth funds. “The 50+1 rule nowadays does not make sense. We’re competing internationally — we’re not in an isolated world. Imposing something like this via regulation is no longer valid,” Carro told the Pink ‘Un.. “If 50+1 wasn’t there, owners could put money into other clubs.”

German football supporters, in particular the clubs’ core fan base known as the fanatic ultras, vehemently oppose opening the league to outside investors keen to acquire majority stakes in clubs. Carro dismisses their argument that it would be the end of traditional football. “I like tradition,” he said, stressing it was possible to protect Germany’s football heritage while modernising the game

The Bundesliga currently earns around €200mn annually from its overseas rights, compared with €2bn for the Premier League and €900mn for Spain’s La Liga. Domestic rights for the Bundesliga are currently out to tender, although recent deals elsewhere in Europe point to a softening market for live football.

“For German football, it is very important to have other winners of the league because definitely there’s a big impact on how attractive it is to watch,” said Carro, Leverkusen chief executive since 2018. The DFL, which operates the Bundesliga, is in the midst of talks with private equity firms CVC Capital Partners and Blackstone over a potential €1bn investment in the league’s commercial operations. However, Carro believes changes to ownership rules would be far more effective in improving the prospects of German football.

Threat of financial calamity removed from Baggies

West Bromwich Albion had effectively been in decline ever since the club was sold to a Chinese consortium in August 2016, paying a figure north of £200m to buy former owner Jeremy Peace’s stake. Controlling shareholder Guochuan Lai’s ownership was fairly disastrous for the club, but his unloved tenure finally came to an end after Bilkul Football WBA, a company ultimately owned by Florida-based entrepreneur Shilen Patel and his father Dr Kiran Patel, acquired an 87.8% shareholding in West Bromwich Albion Group Limited, the parent company of West Bromwich Albion Football Club. This change in ownership was urgently required, due to the numerous financial problems facing West Brom, including growing high-interest debt and serious cash flow concerns, following years of no investment from the former owner. Indeed, West Brom’s auditors had already rung the alarm bell in the 2021/22 accounts when they cast doubt on the club’s ability to continue as a going concern without making player s

Gold standard ground boosts Tottenham's income

The gold standard in European football grounds is the Tottenham Hotspur stadium in north London, a £1bn construction project completed in 2019. Its impact on the club’s finances has become increasingly clear as the effects of the pandemic have faded. Previously, the average fan would spend less than £2 inside the ground on a typical match day, but now that figure is about £16, thanks to new facilities including the longest bar in Europe and an on-site microbrewery. Capacity has gone up from 36,000 at the club’s previous home of White Hart Lane to 62,000. The new stadium — built on land adjacent to White Hart Lane — has opened the door to a broad range of other events that have helped to push commercial income up from €117mn in 2018 to €215mn in 2022. Last year, Tottenham hosted US singer Beyoncé for five nights on her global Renaissance tour, two NFL matches, as well as rugby games and heavyweight boxing bouts. Money brought in from football has gone up too. Match day income is

Spurs to sell minority stake

Tottenham Hotspur is in talks to sell a minority stake in a deal that could value it at up to £3.75 billion and pave the way for Joe Lewis and his family to sever ties with the Premier League football club. Tottenham chairman Daniel Levy is seeking an investment that values the club at between £3.5 billion and £3.75 billion, including debt. While the terms of any deal have not been finalised, City sources expect Spurs to sell about 10 per cent. The club is being advised by bankers from Rothschild on the sale. Tottenham wants to raise fresh capital for new player signings and to help fund the development of an academy for its women’s team, as well as a 30-storey hotel next to its north London stadium. The financier Amanda Staveley, who brokered the deal for Saudi Arabia’s Public Investment Fund to take over Newcastle United, is understood to be among the parties to have expressed an interest in Tottenham. Staveley’s fund, PCP Capital Partners, has raised about £500 million to depl

The Political Economy of Football V2

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