Relegation is every club’s worst nightmare at the end of the season—especially in the Premier League, where the stakes are sky-high.
After a long, gruelling campaign, there’s no worse feeling than seeing all that effort count for nothing as your team drops into the division below. Fans are left deflated, players start weighing up their futures and suddenly the club’s financial outlook looks far less secure.
Fail to stop the slide and, as history has shown, relegation to the Championship can quickly snowball—sending clubs spiralling further down the pyramid.
So how does relegation in the Premier League actually work? And which teams are currently in danger?
Jump To:
- How Does Premier League Relegation Work?
- Who are the Current Contenders for Premier League Relegation?
- Which Team Has Been Relegated from the Premier League the Most Times?
- The Cost of Relegation: The Financial Impact of Demotion from the Premier League
How Does Premier League Relegation Work?
At the end of every Premier League season, the three teams finishing at the bottom of the table (18th, 19th and 20th) are relegated to the league below, the Championship.
It’s fairly straightforward: The three clubs with the fewest points go down. If two or more teams are level on points at the end of the 38-game campaign, goal difference—calculated by subtracting goals conceded from goals scored—determines who faces the drop.
In the rare case that both points and goal difference are identical, the team with the higher goals scored total takes the higher position. If they’re still level, head-to-head records from the season are used, followed by disciplinary records and finally alphabetical order—though it’s never come down to that.
The three relegated teams are replaced by three clubs from the Championship. The first- and second-place finishers earn automatic promotion, while the third spot is decided through the Championship playoffs.
Who are the Current Contenders for Premier League Relegation?
Poor Wolverhampton Wanderers are all but certain to be relegated this season. Despite a slight upturn in form after Christmas, it’s too little, too late for the West Midlands club, who could theoretically still challenge the worst-ever points total in Premier League history—set at 11 by Derby County in 2007–08.
Burnley also look destined for the drop, having not won a single game since October.
West Ham United are third in the danger zone at the moment, but have shown slow signs of improvement under Nuno Espírito Santo. On paper, the Hammers have enough quality to survive—but they still need to close the gap with Nottingham Forest and Leeds United.
Last season’s FA Cup winners, Crystal Palace—decimated in both transfer windows—and both Tottenham Hotspur and Brighton & Hove Albion are also hovering near trouble, though they’re probably unlikely to go down.
|
Position |
Team |
Played |
Points |
Goal Difference |
|---|---|---|---|---|
|
16. |
Leeds United |
25 |
29 |
-9 |
|
17. |
Nottingham Forest |
25 |
26 |
-13 |
|
18. |
West Ham United |
25 |
23 |
-17 |
|
19. |
Burnley |
25 |
15 |
-24 |
|
20. |
Wolverhampton Wanderers |
25 |
8 |
-32 |
*Premier League table correct as of 08-02-26.
Which Team Has Been Relegated from the Premier League the Most Times?
A number of teams have been relegated from the Premier League on numerous occasions—including West Bromwich Albion and Leicester City, both of whom have been demoted five times each.
Burnley, Middlesbrough, Sheffield United, Sunderland and Watford have all been relegated four times, while Birmingham City, Bolton Wanderers, Crystal Palace, Fulham, Hull City, Nottingham Forest, Queens Park Rangers, Southampton and Ipswich Town have gone down three times.
Blackburn Rovers, Cardiff City, Charlton Athletic, Derby County, Leeds United, Manchester City, Newcastle United, Reading, West Ham United and Wolverhampton Wanderers have each been relegated twice.
However, no club has faced the drop more often than Norwich City, who have been relegated a record six times, cementing their reputation as English football’s ultimate yo-yo club. Their most recent demotion came in the 2021–22 season.
The Cost of Relegation: The Financial Impact of Demotion from the Premier League
Dropping out of the Premier League carries a significant financial hit, though mechanisms exist to soften the blow for demoted clubs.
Even those finishing at the bottom of the Premier League table earn substantial sums each season from domestic and international broadcasting deals, merit payments and facility fees. For example, in 2024–25, Leicester City, Ipswich Town, and Southampton—who finished in the bottom three—took home £116.9 million, £111.1 million and £109.2 million, respectively.
Relegation, however, slashes income dramatically. Clubs typically lose around two-thirds of their revenue due to lower ticket sales, reduced sponsorship deals and diminished broadcast income. To prevent financial collapse, the Premier League provides “parachute payments” to cushion the blow.
These payments are structured over several seasons. In the first year after relegation, clubs receive 55% of the standard Premier League TV money. In the second year, that drops to 45%, and for teams with multiple years in the Premier League prior to relegation, a third-year payment of 20% is also included.
While relegation is always a tough blow, these payments give clubs a chance to stabilise, restructure and push for promotion back to the Premier League without facing immediate financial ruin.
