The Country That Would Have Said NO to Foley

The Country That Would Have Said NO to Foley

We’ve all heard the phrase “if we had lost the war, we’d all be speaking German by now”, right?

Some regard it as an authentic adage whereas others find it simply glib and nonsensical. Either way, fast forward to 2023, and with Britain and Germany separated by a seemingly irreversible political schism, in football terms, there are differences between the two countries which Cherries fans should perhaps be thankful for, because, truth be told – if AFC Bournemouth was located on German soil, the real possibility is that our beloved football club might still be “languishing” in the depths of League One.

Why though? Why would we? We’d still be able to scale the football leagues in Germany like we have done in the English football system? Well, potentially, yes we could have, but with German football currently approaching a cross-roads after a very noble period of fair and principled football governance, whisper it – but us Cherries fans might actually be thankful for the way football is run in the UK.

“Amid a cost of living crisis fans often remark that German football is “nirvana”, but is that necessarily true?”

You see, there’s a dichotomy here, because, amid a cost of living crisis, increased ticket prices, shirt prices being at their highest ever, and fan seats being expunged in favour of marquee hospitality, many Bournemouth fans often remark that for the “average” fan, German football is “nirvana”. Think “Bundesliga” and fans think of the cheap ticketing, full stadiums, competitive concessions and possibly the most intense fan day experience outside of South America, but is that necessarily true?

Of course, there is nothing more exciting than seeing massive German crowds attending the Friday Night game after a long hard week. Interest has undoubtedly increased with the arrival of Harry Kane to Bavaria, where hopefully he can achieve his long standing aim of winning something. Judging by the one-sided nature of Bayern Munich’s walkover against Werner Bremen which I watched, personally I’d rather have seen the game between Augsburg and Borussia Munchengladbach. However that is much of a muchness, because, as with all things where somebody is looking from the outside in – while German football looks healthy, underneath the excitement of the fan experience, German football is entering the most divisive period of crisis since the Bundesliga was founded in 1962.

It’s important to recognise that German football has its own distinct character and traditions. Most importantly that the vast majority of football clubs are actually sports clubs, who operate alongside other sports popular in Germany like handball and water polo for example. This is where the idea of a Sporting Director comes from in modern football. Many of these clubs were founded either by municipal councils, member associations or in the case of Bayer Leverkusen, RB Leipzig and Wolfsberg, founded by companies via works council. In England most clubs were founded with the backing of wealthy benefactors, or firms and that private ownership is part of English football. The key takeaway is that unlike their English counterparts, by fans being members of a sports club, they have voting rights.

This leads us to the 50+1 rule, which as with all things, is far more complex upon first appearance. The name of the rule refers to the need for members of a club to hold 50 percent, plus one more vote, or a majority. In short, it means that members have the ultimate say in how they are run, not an outside influence or investor. Under German Football League rules, football clubs are not allowed to play in the Bundesliga (or second division) if outside investors have the controlling interest.

What is often overlooked however is that a majority of football clubs playing in the Bundesliga and Bundesliga 2 are also limited or joint-stock companies, and are created as subsidiaries of a sports club. Many are floated on the stock exchange in order to raise capital for investments, along with other institutions and investment groups. For example, the shareholders of the Bayern Munich men’s first team (FC Bayern München AG) are the members’ club (FC Bayern München e.V. – 75%), Adidas (8.3%), Allianz (8.3%) and Audi (8.3%).

At rivals Dortmund, the members’ club consists of 168,163 members (as of November 2022), controlling 4.61% of Borussia Dortmund GmbH & Co. KGaA, which oversees the men’s first team, reserves and U19s. Signal Iduna holds 5.98% of shares, Bernd Geske 8.24%, Evonik Industries 8.19% and the remaining 72.27% is floated on the stock market. However, the management company in charge of running the football club, Borussia Dortmund Geschäftsführungs-GmbH, is 100% owned by the members’ club, ensuring control of matters and thus compliance with 50+1.

“The takeover of Bill Foley would not be permitted under German football rules, and the management of the club would be in effect be in the hands of Cherries Trust”

Confused? If you thought FFP was difficult, or simply you “don’t do football finance”, welcome to the world of German football finance! However understanding these difficult and often opaque rules is essential if you want to exercise your voting rights to effect change within a club. Quite simply, the takeover of Bill Foley, Max Denim, Eddie Mitchell and Jeff Mostyn would not be permitted under German football rules, and the management of the club would be in effect be in the hands of Cherries Trust, for better or for worse.

There are many things that are worthy of noting however. One of the curious outcomes of this is that many senior positions within the club are run either on a day to day basis by local politicians or dignitaries, or staffed by ex-players with strong connections to their community.. There is no doubt that in Germany, football is far more democratically run than most clubs in Europe. Germany since the war has gained a tradition of civic participation that is far more commonly exercised than the UK. This in theory at least means a much more knowledgeable and engaged fan base, although it should also be said that few, apart from Ultra’s groups, exercise the right to vote. It also means clubs are far more politically active, and that politics dominates internally, sometimes along ideological lines like the famous Leftist club St. Pauli in Hamburg.

“It seems remarkable that Vfb Stuttgart with a 60,000 capacity, which is often full, cannot compete financially with 11,000 capacity Bournemouth”.

However there are growing tensions within the German game, and cracks starting to show within the fanbase. Because the 50+1 rule prevents investment from outside parties, this prevents the sort of cash injection that is often needed to keep clubs competitive or afloat. A number of clubs, for example Hertha Berlin, are in severe financial distress. Other clubs like the aforementioned Bayer Leverkusen, RB Leipzig, Wolfsberg and Hoffenhiem have used various loopholes to circumvent the 50+1 rule. This means that German clubs, despite massive gate revenue and domestic television rights, often can’t compete against other European clubs. It seems remarkable that Vfb Stuttgart with a 60,000 capacity, which is often full, cannot compete financially with 11,000 capacity Bournemouth.

These tensions are now coming to a head, and upon closer inspection it is not hard to see why German football is perceived to be in long term decline. German football revenue has stagnated and in the next few years could remarkably fall behind Ligue 1, well behind the Premier League, La Liga and Serie A, with a potential merger of the Belgium and Dutch League threatening the Bundesliga position at the top table of European football even further.

This is having a direct effect on the pitch, with players and coaches looking outside of Germany because of the financial rewards. German teams, who once did well in European competitions, are now falling behind other European teams because of their inability to keep up spending in an increasingly inflated transfer market. The Bundesliga itself is now resembling a one horse race with Bayern Munich winning the last nine league titles, even last year’s underwhelming performance didn’t prevent them winning. Even on Wednesday, they laboured to a 4-3 win over the worst Manchester United side we have seen in generations. Bayern’s success and dominance is due to the fiscal rewards of participating deep within the Champions League, and creative financial management. Most importantly of all, if the German national team, the crown jewels of German football, fails to perform in the Euro’s on its home soil next year, in part because of a lack of investment in both the senior and youth game, then a potentially explosive situation and a lot of soul searching will occur.

The rub of course is that for football to remain “pure”, many German fans are resisting any form of compromise. When the Deutsche Fußball Liga (DFL), the equivalent of the FA, proposed a partnership with private equity firms of 4 Billion EUR investment to both clubs and league in exchange of television rights early this year, this was fiercely rejected by a number of fan lead groups because of changes in broadcasting times. There were protests at Vfl Bochum, amongst others, at proposed modest increase in ticket prices against the custodians, who are also members, who are trying to keep the club afloat. Bochum faced relegation last season, and a drop into Bundesliga 2 could see even more unrest within the club if form does not improve.

Simultaneously German fans want to retain its uncorrupted competition, yet more and more younger fans vote with their wallets and now watch more La Liga or the Premier League games than domestic competition, with the German football league now disparagingly referred to as a ‘farmers league’. This is why the signing of Harry Kane is significant beyond just the England captain playing for the leading German side, the very face of the Premier League has now arrived in Germany, and the once unified fan base are already seeing heads being turned by the glamor and riches of the global game.

Far from being a nirvana, German football is at a crossroads, between being “pure” or compromising with the global market and the uncomfortable commercial realities that it brings. But the biggest stumbling block for those who think that the 50+1 rule could work in England, and this has been observed by a number of German commentators and fans that I have met over the years, is quite simply English fandom and its addiction to money would never allow it to work. It is here that we return to Dean Court, where we observe this paradox.