There is only an elite tier of football clubs that have not been badly affected by the financial problems posed by the outbreak of the coronavirus pandemic. For non-elite clubs, the lack of entry receipts, television revenue and matchday hospitality was incredibly devastating from an economic perspective. Even Bayern Munich are still trying to do everything in their power to balance the books conservatively in a tough time negotiating contracts for key players in the team who have faced their own string of financial losses since Germany has had some of the toughest and longest COVIDs. restrictions in Europe.
In a recent episode of TOMORROW – the Business & Style podcast, former Bayern CEO Karl-Heinz Rummenigge has explained that he wants stricter Financial Fair Play rules to be put in place for European clubs and he has also called for the 50+ rule to be scrapped 1 in the Bundesliga (Sports1). With the ever-growing financial disparities between Europe’s most elite clubs and everyone else, he believes the sport as a whole is not currently ready to deal with the current problems. “The big problem in football is that football is not ready to draw conclusions from these things. While other sectors like tourism have drawn the consequences (COVID), I don’t think football is ready for it. Wages keep rising, transfer fees keep rising and any industry that increases its budgets during a crisis will eventually have to foot the bill,” he explained passionately.
Before the problems continue to escalate, creating even more of an economic gap between elite clubs and everyone else, Rummenigge said now is the time for governing bodies like FIFA and UEFA to imposing stricter policies on clubs. Even UEFA’s Financial Fair Play reforms, he says, have not been enough to hold elite clubs sufficiently accountable and he believes it is time for more change. “Football, like many things in life, has taken on a life of its own and now the big associations FIFA and UEFA have to do something to stop that. I think that could now be the big hit, in which clubs are given tools in terms of more serious funding, for example in terms of debt levels. Don’t spend more than you earn. That’s the essence of financial fair play,” he said. declared.
As for Germany‘s 50+1 rule, which is in place to protect clubs from the financial influences of outside investors, Rummenigge believes it is a “handicap” in terms of the DFL’s competitiveness with other European leagues. “In Germany there is a huge, huge handicap called 50+1. This is very much desired by fan groups, at least by ultra groups. The big question you just have to ask yourself here in Bundesliga is how long can we afford to have more tradition than competitiveness,” he said.
The 50+1 rule East part of what makes the culture of the Bundesliga so admirable as it correlates with clubs being for and by supporters since at least 50% of the shares are held by members of the club. In the wake of the European Super League project, football fans around the world have referred to the Bundesliga’s 50+1 rule as a beacon for what football clubs should be and the anti-commercialization values it holds. Sure, companies like SAP and soft drink company Red Bull have found ways around the 50+1 rule, but Rummenigge thinks there’s a way to change the rule to keep its core principles, but also help the Bundesliga to become more competitive in the global market.
“At some point you have to think about it, wouldn’t it be better, more modern and competitive for the German league, but especially for international competition,” Rummenigge asked about the possibility of making changes to Rule 50. + 1. “In football, you have to try to refinance yourself seriously and not become dependent on multi-billionaires. It won’t be easy to become more rational again and put the genie back in the bottle,” he continued.