'Important first step': Pauli president welcomes new squad cost rule

St Pauli president Oke Göttlich has welcomed a new squad cost rule by the German Football League (DFL) as "an important first step."

The 36 Bundesliga and second division clubs decided on Tuesday that clubs can spend no more than 70% of their respective revenues on their squads. The rule will come into effect from next season onwards and will be fully implemented by the 2028-29 season.

"We need clear rules to secure competition and economic stability in the league. Further instruments like squad and salary caps can also contribute," Göttlich said.

"We make ourselves more independent from external money with these measures and thus act in a more sustainable way," added Göttlich, who had suggested the measure in the past.

The DFL rule is not the same as salary caps in major North American sports such as NHL ice hockey, NBA basketball or NFL American football.

There the leagues agree with the players unions on a maximum sum franchises can spend on their squads. The figure is the same for every team, regardless of its own revenue.