DFL Adopts New Squad Cost Rule To Strengthen Financial Stability In German Football
As part of the DFL Members Assembly held yesterday, the clubs of the Bundesliga and Bundesliga 2 unanimously decided to introduce a squad cost rule. The aim of this measure is to secure the long-term and sustainable financial stability of the clubs, parent associations, and thus the entire league association.
For many years, the DFL’s licensing procedure has ensured economic stability and professionalism in the Bundesliga and Bundesliga 2. It guarantees that clubs have the necessary liquidity and meet, among other things, sporting, personnel, administrative, infrastructural, and financial criteria. In order to ensure the long-term financial stability of German professional football and protect the integrity of competition in light of changing national and international football conditions, measures to regulate deficits and promote sustainable use of resources are particularly necessary. Against this background, the DFL Executive Committee and DFL Management proposed the introduction of binding regulations for financial stability and comprehensive monitoring, which are now enshrined in a new monitoring regulation.
Gradual introduction from the 2026-27 season
For many years, the DFL’s licensing procedure has ensured economic stability and professionalism in the Bundesliga and Bundesliga 2. It guarantees that clubs have the necessary liquidity and meet, among other things, sporting, personnel, administrative, infrastructural, and financial criteria. In order to ensure the long-term financial stability of German professional football and protect the integrity of competition in light of changing national and international football conditions, measures to regulate deficits and promote sustainable use of resources are particularly necessary. Against this background, the DFL Executive Committee and DFL Management proposed the introduction of binding regulations for financial stability and comprehensive monitoring, which are now enshrined in a new monitoring regulation.
The central element is the squad cost rule, which will be gradually introduced from the 2026-27 season and fully implemented from the 2028-29 season. This regulation is based on the UEFA financial sustainability regulations applicable to international club competitions and stipulates that squad costs may not exceed 70 percent of a club’s relevant revenues. This is intended to prevent financial extreme cases that could harm the integrity of competition and the stability of the respective club and parent association.
The DFL regulation includes a transparent and clear system of monetary and sporting sanctions. It also distinguishes between clubs participating in UEFA competitions and those not participating. Furthermore, the system differentiates between deficits covered by equity and those not covered by equity. In this way, financially healthy clubs not participating in international competitions are to be temporarily allowed greater leeway for higher squad investments in the interest of a healthy competition. Possible sanctions range from financial measures to points deductions and even registration bans – thus prohibiting clubs from registering new players.
The aim of the squad cost rule is to strengthen the financial stability and planning security of the clubs, without reducing national competitive dynamics or international competitiveness.
German professional clubs operate very rationally in international comparison
League President Hans-Joachim Watzke: “German professional clubs operate very rationally in international comparison. The fact that there have so far been only rare problems with the high demands of the financial licensing criteria underlines the success of the system and the professionalism in the Bundesliga. At the same time, it is necessary to further sharpen the financial regulations. Particularly pleasing from the league association’s perspective is the constructive cooperation of all parties involved in developing the new rules for the benefit of German professional football as a whole.”
DFL CEO Marc Lenz: “With the new monitoring regulation and the introduction of the squad cost rule, the DFL is taking an important and meaningful step for all clubs to secure the future viability and financial stability of the leagues. Extreme cases that could harm the integrity of competition and the stability of the respective club and parent association are to be avoided. This is one of the most comprehensive developments of national financial regulations in the history of German professional football.”
The monitoring regulation was developed by the DFL together with a “Financial Stability” working group appointed by the DFL Executive Committee and drawn from the Finance Commission, with representatives from the DFL and six clubs (Bayer 04 Leverkusen, Borussia Dortmund, FC Schalke 04, Hamburger SV, RB Leipzig, SV Darmstadt 98), as well as in close coordination with the Executive Committee, the Finance Commission, and the Finance Assembly.
