German football has decided to reinforce its economic model with a measure aimed directly at preserving its long-term financial stability. The Bundesliga, a 70% cap on squad spending, which brings together the two main tiers of professional football in the country, unanimously approved a new regulation that will limit spending on player squads to 70% of each club’s relevant revenues. The decision seeks to consolidate a system that has historically prioritized sustainability and debt control over the cost escalation seen in other major European leagues.

The regulation, promoted by the Deutsche Fußball Liga (DFL), will be introduced gradually starting in the 2026–2027 season and will reach full implementation in the 2028–2029 campaign. A model inspired by UEFA’s financial sustainability framework, although it incorporates specific adjustments designed to preserve competitive balance within the German football ecosystem and reflect the economic realities of its clubs.

A structural limit on sporting expenditure

The new rule establishes that clubs may not allocate more than 70% of their relevant revenues to the cost of their playing squads, a figure that includes salaries, transfer amortizations, and other expenses directly associated with the first team. A 70% cap on sporting expenditure, through which the league aims to prevent revenue growth from translating into disproportionate increases in spending—an issue that has generated financial tensions across several European competitions.

The system also includes a set of monitoring and sanction mechanisms to ensure compliance. Among the measures are financial fines, points deductions in the standings, and even bans on registering new players. Sanctions designed to ensure financial discipline, which the league views not only as a deterrent but also as a way to reinforce collective financial responsibility in an increasingly competitive environment.

Incentives to balance sporting competition

The regulation also introduces a distinction between clubs competing in European competitions and those that are not. Greater investment flexibility for clubs outside European tournaments, a measure intended to reduce the competitive gap created by the additional revenues generated by continental competitions organized by the Union of European Football Associations (UEFA).

“It is necessary to continue sharpening financial regulations,” said Hans-Joachim Watzke, president of the league, who highlighted the ability of German clubs to maintain rational management compared with other markets. The decision comes at a time of financial strength for the country’s football industry: in the 2024–2025 season, the Bundesliga recorded profits of €242.1 million, while the second division contributed a further €29.5 million. For Marc Lenz, chief executive of the Deutsche Fußball Liga, the new rule represents a step to safeguard the system’s financial stability and protect the integrity of the competition from potential economic imbalances.