Relegation from the English Premier League
A look at the effects relegation can have on a soccer (football) team, particularly in the case of the premier league, where their income is severely restricted by being relegated.
Being relegated from the premier league is something that many teams experience for a variety of reasons, and is also something that can be disastrous for the finances of those teams. Although many clubs are able to gain promotion back into the premier league the following year, for some clubs relegation can mean the end of their success as a large club, and can cause them to fall even further from the top flight.
The differences between the premiership and the championship in terms of finances available to the club through TV deals and sponsorships is massive, and getting larger. The increase in TV revenues alone from being in the premiership runs into millions. For a smaller club being promoted or relegated, this injection of finances can mean the difference between retaining all their bets players and facing a mass exodus at the end of the season.
Many clubs tend to try to stay in the premiership by signing better, and more expensive players, who of course are paid more than championship players. If that team is then relegates, then paying the wages of the premier league signings is often more than the club can afford, and some of them have to leave. This can have the effect of a mass exodus, as the club gets progressively worse due to the better players leaving, more and more players want to move and request to be transferred.
Similarly many of the fans that clubs attract when in the premiership will suddenly abandon the club if they are relegated, which again lowers revenue. Some fans will only attend premiership games, and if their club isn't in the premiership, wont bother to go. Also some people want to see all the international stars competing against their local team, and will go along for the chance to see the worlds best players competing. The championship by contrast has a lot less glamour and internationally recognized players, and as a result has less casual fans.
The fact is that the standard of the football being played in the championship is simply not as good as the premiership. This often means that more games can be scrappy, and that physically strong teams will do very well. However in the premiership the teams have to be a lot better in terms of skill and technique in order to do well. Quite simply the style of football that works well in the championship doesn't work in the premiership, meaning newly promoted teams are often those most at risk for relegation.
Some smaller clubs tend to focus on the league and FA cups rather than the league, which they know they have little chance of doing well in. This can often work well, due to the fact that many of the larger clubs are concerned primarily with the league and European cups rather than domestic ones. However the punishing schedule can often mean that the league form of the smaller clubs will suffer, as their players become injured and tired from the extra workload.
For many clubs, if they are near the bottom of the league, then the goal given to the manager by the chairman is to keep the club from relegation. When this isn't achieved, often the manager is sacked and a new manager much be found. The problem with this however is that by being in a lower league, the quality of managers who will take the job is automatically lower.
One of the most famous falls from grace in recent memory was the double relegation of Leeds United, who managed to get relegated twice in quick succession. After being one of the more successful teams in the early 90s, Leeds began to slip further and further down the premiership table every year, eventually resulting in them being relegated in 2003.
Having been relegated, Leeds suddenly had large difference in their available finances, and what their wage bills were, meaning there best players began to be let go. This had the effect of worsening their performances and causing many of their fans to stop coming to games. Eventually after going into administration and changing ownership, Leeds were relegated again, from the championship unto the first division.
Although many teams such as Manchester United have managed to be successful every year since the premierships creation, success in football is largely cyclical. During the 70s, Liverpool were the dominant team, and Manchester United were at one point only in division two. Similarly Chelsea who are today one of the best teams in the world used to be a perennial mid table team until a few years ago.
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