Bundesliga clubs back squad cost rule – 70% revenue cap phased in from 2026-27

The Bundesliga and Bundesliga 2 have unanimously agreed to introduce a new ‘squad cost rule’ designed to strengthen long-term financial stability across German professional football, following a vote at the DFL Members Assembly in Frankfurt on March 3.The regulation – set out in a new monitoring framework – will be phased in from the 2026-27 season and fully implemented from 2028-29. Under the rule, squad costs must not exceed 70% of a club’s relevant revenues, mirroring the approach in UEFA’s financial sustainability regulations and aimed at reducing the risk of extreme spending that could threaten club stability or the integrity of competition.League president Hans-Joachim Watzke framed the move as an evolution of an already strict national licensing system. Watzke said: “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 chief executive Marc Lenz said the framework represented one of the biggest upgrades of domestic financial controls in Germany’s pro game.Lenz added: “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 system includes a defined ladder of monetary and sporting sanctions – ranging from financial penalties to points deductions and, in the most serious cases, registration bans that would prevent clubs from registering new players. It also differentiates between clubs competing in UEFA competitions and those that are not, and between deficits covered by equity and those that are not, with the intention of allowing financially healthy non-European clubs limited additional room for squad investment during the transition.Separately, members also approved a branding change from 2026-27, aligning the league association and organisation with the competition brand: DFL e.V. and DFL GmbH will become Bundesliga e.V. and Bundesliga GmbH, with committees and platforms renamed accordingly.Clubs additionally backed a voluntary extra U21 competition from 2026-27 to support the transition from academy to senior football, with flexible scheduling, up to four over-age players permitted and a final tournament planned for summer 2027. Lenz said: “With the new additional U21 competition, we are creating an immediate additional opportunity to give talents more playing time at a competitive level and to specifically extend their training period. Further measures must and will follow.”