Once Matt Busby said: “Football is nothing without fans”.

Interspac

The Italian bill – initially approved back to last April – about shared stoke-holdings for football Inc. has introduced a new typo of management, that incorporates clubs’ supporters as shareholder-investors to join the company's management.

The most renowned venture ever launched has been ‘Interspac’, a hard attempt made by Carlo Cottarelli, together with many other ‘nerazzurri’ wealthy celebrities to acquire FC Inter Milan ownership. Despite not getting validated by former President Stephen Zhang the Milanese economist keeps on chatting about his crazy idea to get chained together with his favourite squad:

“Based on the survey conducted two years ago, one thing is certain: the funds from the people's shareholding alone are insufficient to purchase the current club. However, the project represents a collaborative effort that could be beneficial, as fan contributions could help replace the club's debt, leading to a much healthier financial position for the club.

Popular shareholding can undoubtedly strengthen the bond between the club and its fans while offering additional revenue opportunities. The Bayern Munich model serves as a benchmark in this regard, with its clear governance structure.

In their case, three key investors – Audi, Adidas, and Allianz – hold 25% of the capital collectively, demonstrating a balanced and effective system. While replicating this exact model might not be feasible for Inter, given that it’s unlikely fans could collectively reach a 75% stake, their contributions could help reduce the club's debt and enhance its financial stability”.

Reflecting on past efforts, the economist noted, “Our first attempt dates back to late 2018. We followed this with a questionnaire that drew significant interest, with 80,000 Inter fans expressing their willingness to invest in the team. A second contact was made, but ultimately, no tangible progress was achieved”.

Despite the deep attachment to the club – symbolized by the unity between Mr. Zhang and La Beneamata – after eight years of unwavering commitment, the 200-million-euro debt Suning owed to Oaktree was repaid. Consequently, La Beneamata transitioned to the ownership of the San Francisco-based investment fund.

At the end of the day, Cottarelli was definitely right. Popular shareholding occurs when each investor can purchase a single share. However, this model does not adhere to the principle of openness to all.

Instead, diffuse shareholding allows a sports club to sell shares, granting voting rights proportional to the amount invested.

As contributions increase, the rights often grow, leading to situations where the grassroots base has little to no influence overboard elections or appointments.

Crowdfunding, meanwhile, opens fundraising to an indiscriminate public, expanding the potential pool of resources – that may also carry risks such as the devaluation of shares, dilution due to capital increases, market illiquidity, and potential weakening of the intimate connection between the club and its fans.

The central issue lies in the presence or absence of democratic decision-making processes. Although all supporters possess the same voting rights, every decision is made through deliberation among all members, or at least the majority.

Oppositely, the supporters' association serves as the primary means for fans to engage with the club, enabling active participation in decision-making processes.

German system

In contrast, a club based on popular participation operates under the principle of “one member, one vote”. Indeed, the supporters' association owns the majority of the club’s shares (at least 50% +1) and operates democracy and participation, including the German system, English Supporters’ Trusts, and Spanish Socios.

The rise of the German middle class in the 19th century, especially during the period of industrialization, led to the establishment of a wide range of clubs. These were often organized around shared interests, such as literature, sports, and fitness, which helped to foster a sense of community and belonging in a rapidly changing society. Football clubs, in particular, became a significant part of this movement.

The term eingetragene Vereine (e.V.) indicates that the club is a registered association under German law. This was an important step for the clubs, as it provided them with legal recognition, protection, and the ability to conduct business, sign contracts, and manage finances more effectively.

Many of today's well-known German football clubs, like Bayern Munich and Borussia Dortmund, still use ‘e.V.’ in their official names, reflecting this historical origin and their status as members' organizations.

German football clubs stayed non-profit organizations governed by their voting members until 1998, when the German Football League (Deutsche Fußball Liga or DFL) modified its regulations to permit clubs to separate their professional football operations into limited liability companies. This shift allowed for private investment, provided that the original parent club, the “e.V.”, retained 50 percent of the voting shares in the company, plus one additional share.

The clubs were also vital in promoting democratic values, as they were typically governed by their members through democratic elections, ensuring that the members had a say in how the club was run.

If an investor can demonstrate that they have “substantially and continuously supported the sport of football within the parent club for over 20 years”, they may apply for an exemption from the 50+1 rule, allowing them to take full control of the club.

The 50+1 rule is designed to ensure that the club's members – the fans – maintain the majority of voting rights, preventing external entities from gaining majority ownership, which is a common practice in many English football clubs.

Money buys everything

Supporters argue that the rule protects the tradition of affordable football for fans, like keeping ticket prices reasonable, maintaining standing sections, and fostering a sense of community involvement.

The first exemptions were granted to Bayer Leverkusen in 1999 and VfL Wolfsburg in 2001, as both clubs had been supported by the pharmaceutical company Bayer since 1904 and the car manufacturer Volkswagen since 1945.

In 2015, a third exemption was granted to Dietmar Hopp, the founder and owner of the software company SAP, who played a key role in elevating his former team, TSG 1899 Hoffenheim, from local leagues to the Bundesliga between 1990 and 2008. While the exemption was fully compliant with the 50+1 rule, both Hopp and Hoffenheim remain highly unpopular among the German football fans.

The club has built a reputation for developing young talent who can later be sold for significant amounts. This approach has helped the club become financially successful, despite not having the same budget as some of the bigger clubs in the Bundesliga. One of the most notable examples is Roberto Firmino, but Nadiem Amiri and Kerem Demirbay too. Their success is also due to the strong relationship with their sporting director, Alexander Rosen, who has played a key role in their scouting and recruitment efforts.

RB Leipzig technically follows the 50+1 rule. RasenBallsport Leipzig GmbH is 99% owned by Red Bull, with just 1% owned by the club itself, RasenBallsport Leipzig e.V. However, the club retains 100% of the voting rights. The club's voting members are limited to just 17 people, all of whom are either employed by or closely associated with Red Bull. Therefore? RB Leipzig fan cannot become a voting member.

Protest

Hasan Ismaik, the Jordanian billionaire who acquired a 60 percent stake in TSV 1860 Munich in 2011, held only 49 percent of the voting rights to comply with the 50+1 rule. In 2017, 1860 was relegated from the second division. To secure the €11 million needed for a third-division license, Ismaik sought increased control, a demand that the club was unable to fulfill due to legal and organizational constraints—specifically, because it would have violated the 50+1 rule.

Die Löwen were forced to rebuild from the fourth regional level. While the team managed to climb to the third division, Ismaik filed a complaint with the Federal Office, though without success so far. "The Bundesliga doesn't have the revenue streams to compete with England and Spain. We're wasting time!" he told Munich's Abendzeitung newspaper last summer.

Ismaik threatened to take the case to the European Court of Justice, (ECJ) although a case study edited by University of Trier concluded that “the highly controversial ruling would most likely align with European standards”. It added that “Ismaik's case would have little chance of success”.

The supporters' trust or a fan-led association operates with democratic principles to represent the interests of fans within the governance of a football club, to promoting grassroots involvement, ensuring that every fan's voice is heard through a “one head, one vote” model, regardless of the individual's financial contribution or status.

Yellow Army

This approach has proven highly successful in Scotland, where fans of several professional clubs have helped rescue and guide historic teams onto a sustainable path. Notable examples include Heart of Midlothian FC, Motherwell FC, and St Mirren FC, which are now managed through democratic, fan-led organizations: the Foundation of Hearts, The Well Society, and the St Mirren Independent Supporters Association (SMISA), respectively.

For example, recently Torquay United AFC faced the threat of bankruptcy due to the disengagement of the club's then-owner. After securing the club’s survival, with an initial fundraising campaign launched during the club's financial turmoil through the ‘Forever Yellow Fund’, the supporters’ association contributed £50,000 to the club.

This enabled them to take the first step: securing a seat on the board and simultaneously amending the club’s constitution to protect this position from future capital increases (Golden Share). Subsequently, last summer, another fundraising effort was launched through a Community Share Scheme, aiming to raise £100,000. The goal was to secure a second seat on the board and a series of special rights to safeguard fan involvement in the club and protect its history and traditions.

The collaboration between the Bryn Consortium, the Torquay United Supporters Trust, and the successful fundraising campaign shows the power of collective effort in securing a club’s future. The £220,000 raised, which went above and beyond the minimum target, must have been a huge boost in both financial terms and morale for the fans and those involved in the club’s rescue.

With the Torquay United Supporters Trust now holding a 28.6% stake, it seems like the supporters have a strong influence in the club's future. It’s also interesting to see the level of investment that went into the club, totalling £272,501.

Popularism

‘Popular shareholding’ is commonly associated with clubs like Barcelona, Real Madrid, Osasuna, and Athletic Bilbao, which have maintained an associative structure despite the broader trend toward converting into Sociedades Anónimas Deportivas (SAD) in the 1990s. The reform to SAD essentially shifted decision-making power to a small group of people, as these entities became more business oriented.

On the other hand, clubs – where every member typically has equal voting power – that have been refunded following bankruptcy (and therefore follow the pre-SAD model) adhere more closely to the principle of ‘futbol popular’, where democratic governance prevails.

The investors are less likely to put money into an organization they don’t control. This argument is rooted in the desire for influence and a return on investment. Some may feel that the emotional connection to the team or sport has been overshadowed by financial interests. Sport is no longer a passion, but an emotional and economic burden.

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