Under the European league model, clubs can move between divisions through promotion and relegation based on performance. Clubs independently compete for players through transfer markets, where teams can purchase the rights to sign players from other clubs, with limited restrictions on differences in spending.
Under the North American league model (e.g. NHL, NBA, NFL), clubs have permanent league membership without relegation. It commonly uses mechanisms such as salary caps, revenue sharing, and draft systems (where weaker teams receive priority access to new players). Player movement primarily occurs through trades and free agency rather than transfer fees.