Steffen Merkel and Mark Lenz, the executives of the German Football League, stated that the Bundesliga is on a better financial trajectory compared to major European leagues, largely due to the restriction on full ownership by external investors.
In a joint interview with 'Kicker Sports' magazine, Merkel and Lenz emphasized that while German football does require investments, it is not merely about signing the next striker; rather, it involves a long-term approach that ensures the sustainability of clubs.
Details of the Situation
The professional German football system adheres to the '1+50' rule, which mandates that clubs must retain a majority stake of 50 percent plus one share. Lenz expressed concern that football in Europe has strayed from the right path, stating, 'European football is on a financially incorrect path, as the high costs of squads in many leagues are not covered by revenues and must be financed by investors or debt capital.'
The executive director of the German Football League continued to criticize external financial models, explaining, 'In reality, much of this money has been wasted abroad instead of being utilized effectively. Fortunately for the Bundesliga, we do not rely on this capital unlike other leagues.'
Background & Context
The leaders of the German Football League revealed that capital inflows into major European leagues have exceeded 15 billion euros, equivalent to 17.6 billion dollars, during the period from 2014 to 2024. Lenz noted that while they respect the English Premier League, it should not be excessively glorified.
Lenz explained, 'In recent years, this economic power has only partially translated into sporting success at the European level, with clubs recording significant operational deficits that recently reached 1.8 billion euros for the 2024-2025 season, coupled with a high degree of reliance on investors.'
Impact & Consequences
Despite the need for capital, Merkel and Lenz stressed that German football must direct investments towards areas such as infrastructure, academies, and training centers. They affirmed that these long-term investments have a significant impact on future competitiveness.
They added, 'We need to change our mindset; it is not about the next striker, but about our long-term strategy.' This approach could ensure the sustainability of German clubs and enhance their ability to compete on the European stage.
Regional Significance
The success of the Bundesliga serves as a model for Arab leagues, which can benefit from Germany's experience in club management and directing investments effectively. Additionally, enhancing financial sustainability could contribute to the development of football in the region and increase its competitiveness on the international stage.
In conclusion, the Bundesliga's strong financial position highlights the importance of strategic planning and sound financial management in football, reflecting the necessity for adopting similar models in Arab leagues to achieve sustainable success.