What Is Relegation in Soccer? Understanding the System & Its Impact | OneFootball

In a cup competition's knockout rounds, defeat means elimination, ending a team’s chances of winning silverware.

In a league match, however, while the immediate impact may be limited—aside from a dented ego and shaken confidence—the long-term repercussions can be severe.

A single loss could mean the difference between winning a title or falling just short. At the other end of the table, it could determine whether a struggling team avoids relegation or drops to a lower division—a fate akin to a wooden spoon in soccer.

So, what exactly is relegation, and how does it work?

How Relegation Works in Soccer

Relegation isn't easy for players. / Getty

Most countries that play soccer organize their leagues—both amateur and professional—into a pyramid structure.

At the base are the lower leagues, which consist of amateur and semi-professional teams, while the higher, professional leagues sit at the top.

For example, in England, the soccer pyramid consists of seven main tiers. At the very top is the Premier League, the country's elite division. Below that is the Championship, followed by League One, League Two, and so on, extending down through various semi-professional and amateur leagues.

To allow teams to move between these tiers, a system of promotion and relegation is used.

Unless they are already in the top division, teams that finish at or near the top of their league are promoted to the division above for the following season. Meanwhile, teams that finish at the bottom are relegated to the division below, effectively swapping places with the promoted clubs.

The number of teams promoted and relegated at the end of each season varies by league. For example, in the Premier League, three teams are relegated to the Championship each season, while three teams from the Championship are promoted to take their place.

Why Do Soccer Leagues Use Relegation?

Relegation can be devastating for fans. / PA Images/IMAGO

Relegation and promotion serve multiple purposes in soccer, all rooted in maintaining sporting integrity and fairness.

Unlike closed-league systems, where underperforming teams are protected regardless of results, relegation and promotion ensure that success is rewarded while failure has real consequences.

For teams that excel, promotion offers the chance to compete at a higher level, face stronger opponents, and reap the financial rewards that come with it—including increased television revenue, and sponsorship opportunities.

On the other hand, relegation acts as a penalty for poor performance, preventing complacency by forcing teams to fight for survival until the very last game.

Relegation and promotion aren't just for players and teams—they’re for the fans too, keeping the season engaging from start to finish, with battles to avoid the drop often as intense as the race for the title.

Which Soccer Leagues Use Relegation?

Three teams are relegated from the Premier League each season. / IMAGO/Visionhaus

Most professional soccer leagues around the world employ relegation and promotion.

In Europe, for example, all of the continent's major divisions—Spain's La Liga, France's Ligue 1, Germany's Bundesliga, Italy's Serie A, and the English Premier League—follow this system, as do the Netherlands' Eredivisie and Portugal's Primeira Liga.

In fact, the only two senior leagues governed by UEFA, Europe’s soccer governing body, that don’t have relegation or promotion are San Marino's Campionato Sammarinese di Calcio and the Gibraltar National League, mainly due to the small size of both nations.

Outside of Europe, there are also two prominent leagues that don’t use relegation and promotion: Major League Soccer and Liga MX.

MLS operates on a franchise system, where teams must buy into the league to participate. Formed in 1996, this relatively young league uses this structure to ensure financial growth and stability, allowing it to develop infrastructure and attract high-profile players like Lionel Messi.

Liga MX, meanwhile, temporarily suspended relegation and promotion in 2020, with the change set to last until 2026. This decision was made to stabilize the league's economy and prevent teams from going bankrupt amid declining revenue.

The Consequences of Relegation in Soccer

Norwich City know plenty about being relegated. / Newscom World/IMAGO

The main and most obvious consequence of relegation in soccer is that the demoted team must compete in a lower division the following season, facing supposedly weaker opposition.

However, the knock-on effects of relegation are far more significant, and the consequences can be severe.

Dropping down a league can severely impact a team’s finances. Not only do they lose a substantial amount of broadcast revenue, but they may also lose sponsorship deals, as companies are often unwilling to pay for exposure to a significantly smaller audience.

Fortunately, in some leagues like the Premier League, relegated teams receive "parachute payments" to help ease the financial burden of dropping a division.

Relegation can also lead to the loss of key players, who are eager to stay in the top tier and will often leave for better offers. The demoted team, facing financial struggles and reduced wage budgets, is unable to retain their best talent.

Although it ideally shouldn't, relegation can also take a toll on fans. It often leads to decreased attendance at matches, which further hurts the club's finances.

All in all, it’s safe to say that relegation is far from ideal.

Famous Relegation and Promotion Stories

Bournemouth was once all the way down in League Two. / Action Plus/IMAGO

There have been many famous examples of teams experiencing significant rises and falls across the world's top soccer leagues, especially in Europe.

In England, for example, Bournemouth climbed from League Two to the Premier League in just six seasons between 2009 and 2015. Leicester City, meanwhile, rose from League One to the Premier League in six seasons between 2008 and 2014, and then famously won the Premier League title in only their second season back in the top flight.

Portsmouth, FA Cup winners in 2008, on the other hand, plummeted from the Premier League to League Two within five seasons due to financial struggles, though they have since stabilized in League One.

In Spain, RC Celta de Vigo holds the title of world soccer's biggest-ever "yo-yo" team. Between 1974 and 1983, the Spanish club recorded an astonishing nine consecutive promotions and relegations over three divisions.

As for the most consecutive relegations, that title belongs to Dutch side Achilles '29, which was demoted five times in a row between 2016 and 2023, dropping from the country’s second division to its seventh.