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Football 101: What is relegation in football?

We explain in simple terms what relegation (or promotion!) means in football and what impact this has on clubs.

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Apr 8, 2024
6 min read
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Football 101: What is relegation in football?

In football, relegation is one of the worst things that can happen to a club.In short, if a club is relegated, it loses its league membership and must compete in a lower league.This will have a huge impact on players, coaches, fans and the club as a whole.

If you're a football fan, it's important to understand relegation as it has a huge impact on the tactics, pressure and emotions associated with games at the bottom of the table, especially at the end of the season.

Read on to find out everything you need to know about relegation and promotion in football.

What is relegation in football and how does it work?

Almost every major football league is part of a pyramid system from grassroots football to amateur football to the national professional elite. All the "big five" European football leagues (Premier League - England, Bundesliga - Germany, La Liga - Spain, Serie A - Italy and Ligue 1 - France) follow this system, with each league having a certain number of such teams are relegated after each season.

Each league has slightly different rules, depending on the number of teams in the league and the overall structure of the country's pyramid. But simply put: if you end up in a league's "relegation zone," you'll be relegated to the league below.

In the Premier League and Serie A, the last three teams were relegated after all games. However, in Ligue 1 and the Bundesliga, only the bottom two teams will be automatically relegated, and the third-to-last team will participate in the "relegation play-offs" against the teams in the league list below that have completed the "promotion play-offs" win.

League standings are determined by the number of points a team earns in a season. All major football leagues and competitions use the following points system: Three points for a win, one point for a draw and zero points for a defeat.

What is football advertising?

In football, promotion is the opposite of relegation. A certain number of teams that reach the "promotion point" will automatically be promoted to said league or enter the playoffs in an attempt to achieve this feat.

In the English Football Championship (the second tier after the Premier League), the top two clubs at the end of the season are automatically promoted, with clubs ranked third to sixth advancing to the play-offs.

Clubs that already compete in their respective countries' top leagues cannot be promoted. Instead, they compete to become overall champions of their leagues and countries, often for the right to compete in continental competitions such as the UEFA Champions League or Copa Libertadores.

In theory, any club belonging to their respective national football association can move up the pyramid and compete at higher levels, earning greater prize money and rewards.

That's exactly what Hollywood superstars Ryan Reynolds and Rob McElhenney hope to do as owners of Welsh football club Wrexham A.F.C., which competes in the English Football League system.

The pair completed the deal to buy the club in February 2021 while the team was competing in the National League, the fifth tier of English football. Thanks to investment from its new owners, the club became National League champions in 2022-23 and currently competes in EFL League Two, the fourth and lowest tier of fully professional football in England.

Why is there promotion and relegation in football?

"Open" promotion and relegation systems are a European phenomenon, especially in professional sports. However, it doesn’t just apply to football, but to many other sports such as basketball, rugby and even esports.

Unlike the "closed" franchise model of American professional sports, the development of European football leagues in the 20th century viewed promotion and relegation as a way to create competitive balance, based on club rankings or bonuses. There is merit in doing so.

Franchise and promotion and relegation models each have their own pros and cons. Many critics of the franchise system would argue, for example, that the worst-performing teams in the NFL have nothing to play for at the end of the season and may even intentionally underperform in order to secure cheap draft picks the following season.

However, in football leagues with promotion and relegation, the financial impact of relegation can cause huge disruption and long-term consequences. Damage to the club could have far-reaching consequences.

Portsmouth Football Club went from being FA Cup winners and Premier League regulars in the 2000s to falling into financial difficulties and being relegated three times in 2010, 2012 and 2013, falling to the fourth tier of English football for the first time since 1980.

The impact of football promotion and relegation

The Premier League is the world's largest financial football league, and it is also the place where the impact of promotion and relegation is most obvious. It provides the greatest advantage to those who advance, but can also have devastating consequences for those who are relegated.

Football clubs relegated from the Premier League to the Championship will face a revenue loss of between £85 million and £100 million ($103 million to $121 million), according to expert Ben Peppi, head of sports services at JMW Solicitors. Year after year.

Relegated teams mainly balance the books by selling star players, but this is not without risks. Leicester City has sold England internationals James Maddison and Harvey Barnes for a combined fee of around $90 million after being relegated from the Premier League in 2023.

While this fills a significant financial hole, these players will still need to be replaced and even if the club achieves promotion in the next season or two, the team will likely be weaker than when relegated. This will make it more difficult for the club to regain a foothold in the Premier League.

Especially in England, many clubs are struggling with the financial burden of relegation, and not every team has players who can command higher transfer fees. This has caused some English football clubs to go bankrupt or have other major financial problems after being relegated.

How to Survive Football Relegation

To deal with the financial burden of relegation, the Premier League introduced "parachute payments", meaning relegated clubs receive 55% of the Premier League's basic television rights in the first year, 45% in the second year and 45% in the third year. 20% per year if the club stayed in the Premier League for more than one season before being relegated. This helps reduce the risk of clubs having to declare bankruptcy due to the Premier League's high cost base, mainly player wages.

Famous football promotion and relegation

1. Kaiserslautern Football Club

The German club Kaiserslautern made history in the late 1990s, becoming the only team in the history of German football to win the Bundesliga and Bundesliga titles for many consecutive years.

The team was relegated from the Bundesliga in 1996, but rebounded the following season (1996-97) to win the Bundesliga 2nd title, regaining their status in Germany's elite football league. It is worth noting that after winning the Bundesliga title for the second time, they defeated the confident Bayern Munich team by two points to win the Bundesliga title and win the German football championship.

2. Leicester City

Leicester have spent nine seasons outside the Premier League after winning the title in 2013/14. Fans were optimistic about being a Premier League club again, but none of them could have predicted what would happen next.

On April 3, they trailed the safeties by seven points and the Foxes were running out of time. They needed a huge turnaround, and the team delivered. They won seven of their last nine games and finished in 14th place.

At the start of the 2015/16 season, many fans and pundits expected Leicester City to be in a relegation battle again, but things couldn't be better for the club. Under the leadership of Italian Claudio Ranieri, Leicester City won the Premier League championship with odds of 5000:1 and entered the annals of sports history.

3. Deportivo Sport

The Spanish football team Deportivo had an astonishing record of being promoted and relegated for seven consecutive seasons in the 1960s. From 1962 to 1968, the club switched back and forth between Serie B and La Liga every year, earning them the nickname "The Elevator Team".

Over the next few years, the club was promoted and relegated, ultimately spending 15 years outside Spain's top flight and incurring huge financial and infrastructure debts.

Diploma

To sum up, football promotion and relegation is the highest standing and represents the lowest point for clubs around the world. This high-stakes drama sums up football as a sport and avoiding relegation can mean the world to fans and players alike.

So before you watch Luton Town take on Sheffield United, remember that this game could be the deciding factor in promotion or relegation, and all the drama that comes with it.

For more football guides, check out Football Positions Explained or The Best Football Teams of All Time.

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