valo403 has nailed it. Just to add:
The English league as an example.
The Premiership is the top league. The winner is the team with the most points, correct. The next three teams also qualify for the Uefa Champions League. #2 automatically, the next 2 via a one game playoff. The bottom three teams are relegated to the next lower tier, The Championship.
The Championship. Top 2 team automatically promoted to the Premiership. 3 through 6 enter a playoff format. 3 vs 6, 4 vs 5. Winners meet in a one game winner takes all for promotion. Bottom 3 relegated to Division 1.
Division 1, same format. Relegated to Div. 2.
Div 2 is the lowest pro league in England. The bottom team enters the Non-League Conference division. The pyramid continues from there down the multiple lower leagues.
In England there are also two knockout cups.
The Football Association Cup or FA Cup as it's famously known. It's the oldest football competition in the world, first held in 1871.
Then there is the League Cup which is currently called the Carling Cup. This has been known as the Littlewoods Cup, Milk Cup, Coca-Cola Cup among others over the years. Only the 92 professional teams can enter the tournament unlike the 762 teams that entered the FA Cup last season.
Internationally speaking.
The World Cup is the main international tournament, watched by more people than the Olympics. 715 million people watched the 2006 Final. Currently 32 teams qualify for the Final tournament after 2 to 3 years of qualifying.
Then there are regional tournaments like the European Championship and the Copa America, for South American teams, started in 1916 and is the oldest international tourny in the world.
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