The basic rule
At the end of every Premier League season, the three clubs finishing at the bottom of the 20-team table are relegated to the Championship, English football's second tier. There is no play-off or reprieve for the bottom three — league position at the final whistle of the season decides it, full stop.
Why it is always exactly three
The Premier League maintains a fixed 20-club structure, so for every club promoted up from the Championship, one has to go down to keep the numbers balanced. Three up, three down each season is what keeps both the Premier League and the Championship at their intended size year after year.
Points first, then goal difference
Final league position is decided by total points first. When two or more clubs finish level on points, goal difference — total goals scored minus total goals conceded across the season — is the first tiebreaker, followed by total goals scored if goal difference is also level. It is rare for relegation to come down to these fine margins, but it has happened, which is why goal difference gets tracked so closely in a tight relegation battle.
What relegation actually costs a club
Beyond the obvious drop in prestige, relegation carries a serious financial impact. Premier League broadcast revenue is far higher than the Championship's, and relegated clubs typically see a significant chunk of their income disappear at once. Most relegated clubs also lose key players, either sold to raise funds or because those players have relegation release clauses allowing them to leave for a lower fee.
Parachute payments
To soften that financial cliff edge, relegated clubs receive parachute payments — a declining share of Premier League broadcast money paid out over several years after relegation. This is meant to help a relegated club adjust gradually rather than facing an immediate full loss of Premier League-level income, and it is also part of why some relegated clubs are able to spend competitively in the Championship the following season.
More football coverage
Format changes are not limited to domestic leagues — see how the Champions League moved away from its old group stage too. More like this in our Sports section.
