Why the Bundesliga business model is the best in Europe

The passing was exquisite, the pace smooth, and the relentless pressure in the attacking third positively Catalan. But this was not Barcelona tearing the newly formed Hamburg defence to shreds, but rather the new guard of a grand old club from Germany’s unfashionable Ruhr region. Borussia Dortmund may have lost their exquisite form of last year along with Nuri Sahin, but it remains remarkably fresh in the memory. The unstoppable ups and downs of Dortmund, and their on and off field transformation over the last few years, prove, moreover, that the German model works.

The squabble over the respective financial models of the Bundesliga and the Premier League is now well acknowledged. Most pundits, content to remain diplomatically dull, insist that both restrictive German expenditure-capping and the free market financial orgy of the Spain and England have their merits, and that to describe either system as “better” is a mistake. Such appeasement of the Premier League’s consumer culture is misguided. It is time to expel the myth that this is a case of six of one and half a dozen of the another, and accept that the Bundesliga represents the only realistic, existing model for long term prosperity in the European game.

The Bundesliga’s resounding efficiency as a business model reflects the same trademark efficiency which allows Germany to be Europe’s leaders in terms of the economy and the environment. The now heartily disputed 50+1 rule dictates that at least 51% of any and every club must be owned by supporters, and the results of this restriction – elected board members, low ticket prices and the most competitive and unpredictable league in Europe – are plain to see. In Germany, you can watch Bayern Munich play every week for €15, and the league has this year sold a collective total of around 500,000 season tickets. Oh, and on top of that, it is the only league out of the “Big Four” which is not sponsored by an external corporation such as Barclays. The Bundesliga is, in short, about as close as modern football gets to socialism in action.

Of course, just like socialism, it is in no way perfect. Nor is criticism of the German system exclusive to those greedy, money grabbing doubters in Spain and England. Several clubs, most notably Hannover 96, continue to lobby for an alteration to the 50+1 rule which would, in their eyes, grant them more freedom and more success. Other sceptics would point to the the corporate backing which has facilitated the rise of TSG 1899 Hoffenheim and saved clubs such as the newly named Red Bull Leipzig and TSV 1860 Munich from near extinction as proof that this is no Socialist Utopia. But whoever said it should be?

This is where Dortmund are the perfect advert for the Bundesliga model. From being racked with debt in the middle of the last decade, the careful guidance of Hans Joachim Watzke and Michael Zorc, and the inspired leadership of charismatic coach Juergen Klopp has allowed Dortmund to create another title winning side from less than scratch. The debt is still yet to disappear, but there are no delusions about that: with the sale of Sahin and the refusal to spend excessively prior to the Champions League, the club’s feet have remained firmly on the ground. But even without expenditure, it is difficult to deny that this is one of Europe’s most exciting young teams, despite their recent woes. It is a true team built from a club’s youth system with a young manager, rather than assembled hastily with the riches of one shady boardroom figure. Their rebirth has come about from financial caution, and sensible, long term planning, both on and off the field.

It is difficult to imagine a similar story unfolding in the free for all world of the Premier League. There, debt is covered up with more debt. While German clubs are at just as much liberty to corrupt themselves as Spanish and English clubs are, the universal and rigorous nature of the regulations means that no league bailout or Russian benefactor will be automatically there to catch them once they inevitably fall. If they obey the rules, they will have an equal chance at success to everyone else, but never be ruined by financial catastrophe.

As for the lack of European success over the last decade – is this really to be sneered at? The Bundesliga has been left out in the cold by the tardiness of UEFA in implementing proper Financial Fair Play rules; its focus on domestic stability and sensible progress has left it unable to truly compete in Europe. Slow growth, however, should not be underestimated, and a European trophy for the cabinet of the Bundesliga should be expected in the next few years.

The German model is not faultless – and it would be dangerous to imagine so – but Dortmund have demonstrated why it is indisputably preferable to any other. And there is something a little ugly, in the way that external critics are so keen to pick up on the system’s minor failings, and thus reject it as a model entirely. It is a similar vein of schadenfreude to that which often sees Barcelona roundly criticised for the tiniest of errors – no matter how good something is, we don’t like seeing it praised too much. Such immaturity will not do the game of football any good in the long run.

Photograph courtesy of PATRIK STOLLARZ/AFP/Getty Images

This piece was written by Kit Holden. You can find more of Kit’s superb work by following him on twitter @KitHolden, visiting bundesligafanatic.com or on his blog at denglischerfussball.tumblr.com

Edited by Staff Editor