Promotion and relegation
Promotion and relegation is used by sports leagues as a process where teams can move up and down among divisions in a league system, based on their performance over a season. Leagues that use promotion and relegation systems are sometimes called open leagues. In a system of promotion and relegation, the best-ranked team in a lower division are promoted to a higher division for the next season, and the worst-ranked team in the higher division are relegated to the lower division for the next season. During the season, teams that are high enough in the league table that they would qualify for promotion are sometimes said to be in the promotion zone, and those at the bottom are in the relegation zone. These can also involve being in zones where promotion and relegation is not automatic, but subject to a playoff.
An alternate system of league organization, used primarily in Australia, Canada, the Philippines, Singapore, and the United States, is a closed model based on licensing or franchises. This maintains the same teams from year to year, with occasional admission of expansion teams and relocation of existing teams, and with no team movement between the major league and minor leagues. Some competitions, such as the Belgian Pro League in football or the Super League in rugby league, operate hybrid systems which allow for promotion and relegation between divisions but which allocate this based on a mix of financial and administrative scores with competition performance.
Overview
The number of teams exchanged between the divisions is almost always identical. Exceptions occur when the higher division wishes to change the size of its membership, or has lost one or more of clubs and wishes to restore its previous membership size, in which case fewer teams are relegated from that division, or more teams are accepted for promotion from the division below. Such variations usually cause a "knock-on" effect through the lower divisions. For example, in 1995 the Premier League voted to reduce its numbers by two and achieved the desired change by relegating four teams instead of the usual three, whilst allowing only two promotions from Football League Division One. Even in the absence of such extraordinary circumstances, the pyramid-like nature of most European sports league systems can still create knock-on effects at the regional level. For example, in a higher league with a large geographical footprint and multiple feeder leagues each representing smaller geographical regions, should most or all of the relegated teams in the higher division come from one particular region then the number of teams to be promoted or relegated from each of the feeder leagues may have to be adjusted, or one or more teams playing near the boundary between the feeder leagues may have to transfer from one feeder league to another to maintain numerical balance.The system is said to be the defining characteristic of the "European" form of professional sports league organization. Promotion and relegation have the effect of allowing the maintenance of a hierarchy of leagues and divisions, according to the relative strength of their teams. They also maintain the importance of games played by many low-ranked teams near the end of the season, which may be at risk of relegation. In contrast, the final games of a low-ranked US or Canadian team serve little purpose, and in fact losing may be beneficial to such teams because they offer a better position in the next year's draft.
Although not intrinsic to the system, problems can occur due to the differing monetary payouts and revenue-generating potential that different divisions provide to their clubs. For example, financial hardship has sometimes occurred in leagues where clubs do not reduce their wage bill once relegated. This usually occurs for one of two reasons: first, the club can not move underperforming players on, or second, the club is gambling on being promoted back straight away and is prepared to take a financial loss for one or two seasons to do so. Some leagues offer "parachute payments" to its relegated teams for the following year. The payouts are higher than the prize money received by some non-relegated teams and are designed to soften the financial hit that clubs take whilst dropping out of the Premier League. However, in many cases, these parachute payments just serve to inflate the costs of competing for promotion among the lower division clubs as newly relegated teams retain a financial advantage.
In some countries and at certain levels, teams in line for promotion may have to satisfy certain non-playing conditions in order to be accepted by the higher league, such as financial solvency, stadium capacity, and facilities. If these are not satisfied, a lower-ranked team may be promoted in their place, or a team in the league above may be saved from relegation.
While the primary purpose of the promotion and relegation system is to maintain competitive balance, it may also be used as a disciplinary tool in special cases. On several occasions, the
Italian Football Federation has relegated clubs found to have been involved in match fixing. This occurred most recently in 2006, when the season's initial champions Juventus were relegated to Serie B, and two other teams were initially relegated but then restored to Serie A after appeal.
As of the 2020s, empirical evidence increasingly pointed to the conclusion that promotion and relegation, standing alone, was insufficient to ensure adequate parity in any given game or the overall financial performance of a sport. Most importantly, the failure of most association football leagues to adequately regulate individual player compensation had resulted in too many games ending in predictable blowouts, and thereby reduced the financial value of such games in terms of ticket sales and media rights. This explained why in the 2020s, association football leagues were collectively bringing in annually only about two times the revenue of the National Football League, even though association football had eight times the number of fans worldwide as American football. It was reportedly because of such evidence that the EuroLeague adopted mandatory salary bands in September 2024.
International sport
Promotion and relegation is used in international sports leagues such as in Europe, and many other parts of the world. It may be used in international sports tournaments. In tennis, the Davis Cup and Billie Jean King Cup have promotion and relegation, with a 'World Group' at the top and series of regional groups at a lower level. The World Groups in both use a knockout tournament format, with the first-round losers entering play-offs with winners from regional groups to avoid relegation. In international tournaments, this format allows teams from countries in which a sport is less well established to have competitive matches, while opening up the possibility of competing against higher ranked nations as a sport grows. Other international tournaments which employ promotion and relegation include the Ice Hockey World Championships, Bandy World Championships, Floorball World Championships, the UEFA Nations League, the CONCACAF Nations League, the World Cricket League and the European Team Championships in athletics.Historical comparisons
Early baseball leagues in the United States
In baseball, the earliest American sport to develop professional leagues, the National Association of Base Ball Players was established in 1857 as a national governing body for the game. In many respects, it would resemble England's Football Association when founded in 1863. Both espoused strict amateurism in their early years and welcomed hundreds of clubs as members.Baseball's National Association was not able to survive the onset of professionalism. It responded to the trend – clubs secretly paying or indirectly compensating players – by establishing a "professional" class for 1869. As quickly as 1871, most of those clubs broke away and formed the National Association of Professional Base Ball Players. That new, professional Association was open at a modest fee, but it proved to be unstable. It was replaced by the National League of Professional Base Ball Clubs in 1876, which has endured to the present day. The founders of the new League judged that in order to prosper, they must make baseball's highest level of competition a franchise based system with exclusive membership, a strict limit on the number of teams, and each member having exclusive rights to their local market.
The modest National League guarantee of a place in the league year after year would permit the owners to monopolize fan bases in their exclusive territories and give them the confidence to invest in infrastructure, such as improved ballparks. In turn, those would guarantee the revenues to support traveling halfway across a continent for games. Indeed, after its first season, the new league banked on its still doubtful stability by expelling its members in New York and Philadelphia, because they had breached agreements to visit the four western clubs at the end of the season.
The NL's dominance of baseball was challenged several times after its first few years, but only by entire leagues. Eight clubs, the established norm for a national league, was a prohibitively high threshold for a new venture. Two challengers succeeded beyond the short-term, with the National League fighting off a challenge from the American Association after a decade. In 1903 it accepted parity with the American League and the formation of the organization that would become Major League Baseball. The peace agreement between the NL and the AL did not change the "closed shop" of top-level baseball but entrenched it by including the AL in the shop. This was further confirmed by the Supreme Court's 1922 ruling in Federal Baseball Club v. National League, giving MLB a legal monopoly over professional baseball in the US.
The other major professional sports leagues in the United States and Canada have followed the MLB model of a franchise based system.