English football operates on a pyramid system rather than a closed franchise model. At the end of each season, the three clubs finishing at the bottom of the Premier League table are relegated to the EFL Championship, while the top two Championship clubs are promoted automatically, with a third promotion spot decided by a play-off between clubs finishing third to sixth.
Why it shapes the whole season
Because relegation carries such significant financial consequences — clubs lose out on broadcast revenue that dwarfs anything available lower down the pyramid — the fight to avoid the bottom three is often followed as closely as the title race itself. It also means newly promoted clubs arrive in the Premier League each year, adding fresh opponents, new rivalries and a genuine incentive for lower-league clubs to keep investing in their own development.