Why Do Relegated League One Clubs Struggle So Much?

Relegation from League One to League Two is a bitter pill for any football club to swallow. Fans dread it, players lament it, and managers often pay the price for it. Yet, what’s striking is how often these clubs don’t just fall—they stumble, flounder, and sometimes sink even further in the seasons that follow. The drop to the fourth tier of English football should, in theory, offer a chance for a swift rebound. After all, these teams were competitive in League One, a division above. So why do so many relegated clubs struggle to adapt and recover?

One major factor is financial turmoil. League One clubs, even those at the bottom, often operate on budgets stretched thin by the ambition to compete in a division where wages and expectations are higher than in League Two. When relegation hits, the loss of revenue—smaller crowds, reduced TV money, and fewer commercial opportunities—creates a brutal squeeze. Clubs can’t offload high-earning players overnight due to contracts, leaving them saddled with costs they can no longer afford. Meanwhile, League Two’s tighter financial landscape demands a leaner operation, but the transition rarely happens smoothly. Rochdale, for example, faced years of struggle after dropping from League One in 2021, with off-field instability compounding their woes. This has also been seen more recently with Morecambe and Carlisle, who both stare at Non League football next season, despite recently playing in the division above.

The final 11 minutes of the @SkyBetLeagueTwo fixture with @SalfordCityFC was played to a conclusion later this afternoon behind closed doors, with the game finishing in a 2-1 defeat.

Results this afternoon now mean we will be in the National League from next season. #oafc pic.twitter.com/1l8hj1vNSz

— Oldham Athletic (@OfficialOAFC) April 23, 2022

The psychological blow of relegation also can’t be overstated. Players who were accustomed to mid-table scraps or playoff pushes in League One suddenly find themselves in a division where the football is scrappier, the pitches less forgiving, and the stakes feel lower. Confidence erodes, and a losing mentality can take root. Fans, too, grow restless, expecting an immediate return but seeing a squad demoralized by the step down. Take Oldham Athletic: after relegation in 2018, they’ve languished, unable to recapture their former spark, weighed down by a sense of drift, and now still struggle to gain promotion from the national league.

Ownership issues of course often play a factor in relegation in the lower tiers, this has been very evident around Greater Manchester, with Rochdale, the aforementioned Oldham, and of course the sad story of Bury all suffering due to terrible owners. Relegation can expose or worsen mismanagement—debts mount, ownership disputes flare, and fan discontent grows. Another example, much further south, comes at Southend United, relegated in 2021, they have battled not just opponents but existential crises, with points deductions and winding-up orders haunting their recovery.

In short, relegated League One clubs struggle because the drop isn’t just a change of division—it’s a perfect storm of financial strain, mental fragility, squad misfit, and relentless competition. Bouncing back demands resilience, reinvention, and a bit of luck. For every success story like Bristol Rovers, there’s a cautionary tale like Tranmere Rovers, who took years to climb back. The aftermath of relegation isn’t a gentle slope—it’s a cliff, and too many clubs fail to find their footing.