Friday , April 19 2024

DFL’s First licensing decisions for 2022-23!

On Wednesday, April 20, the DFL Deutsche Fußball Liga made its first licensing decisions for the forthcoming 2022-23 season of the Bundesliga and Bundesliga 2. In this first phase, none of the 47 applicants were denied the licence. Subject to qualification on the pitch, some clubs will be required to satisfy certain obligations in the upcoming season. Conditions were not imposed on any applicants.

In the licensing process, financial, sporting, legal, staffing, administrative, infrastructural and media-related criteria were examined in accordance with the licensing regulations of the DFL with a view to ensuring honest and fair competition. In examining various criteria, the DFL can impose conditions or obligations on applicants in accordance with its Licensing Regulations. A condition stipulates that certain requirements must be met by a set date before the new season, so that – subject to all other criteria being satisfied – a licence can be issued for the coming season. An obligation defines the criteria that must be maintained throughout the season once a licence has been issued.

The clubs have one week in which to appeal against the preliminary decision.

After financial criteria were largely left out of the licensing process for the past 2020-21 season given the countless uncertainties because of the coronavirus pandemic, economic capability was examined again for the current 2021-22 season, both before and during the season. Similarly, sanctions were and are provided for, in the event of violations. In accordance with a corresponding resolution at the DFL Members Assembly on December 14, 2021, this also applies to the coming 2022-23 season. In comparison to the previous year, there can also be capital obligations again.

Against the backdrop of the ongoing economic uncertainty due to the coronavirus pandemic, conditions relating to financial criteria and therefore liquidity are being replaced in the licensing process for the 2022-23 season by obligations that must be satisfied by 15 September 2022. If a club is unable to make up its liquidity shortfall by the deadline, it will be deducted six points with immediate effect, as part of the 2022-23 season. In addition, the club will still be required to ensure the financing of match operations until the end of the season.

As usual, the examination of economic performance during the season will begin from the end of October 2022, including the possible issuance of obligations to close any liquidity gaps and the associated “transfer obligation”. This part of the licensing process also takes the clubs’ activities in what will then be the past summer transfer period into account in the liquidity calculation until the end of the season. If any obligations to close a liquidity gap are identified in the second part of the licensing process and are not complied with by January 15, 2023, four points will be deducted with immediate effect. With regard to the “transfer obligation”, the club in question may only conclude a transfer contract with another club during the “transfer period II”, in January 2023, if the club proves to the DFL in advance that it can settle all liabilities stemming from this transfer due by June 30, 2023. If a club concludes a transfer contract without obtaining the necessary approval from the DFL, two points will be deducted with immediate effect. These rules already apply in the current 2021-22 season.

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