Master's Thesis from the year 2008 in the subject Health - Sport - Sport
History, grade: distinction, The University of Liverpool, language:
English, abstract: 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.
