Football League Two, commonly known as League Two or Coca-Cola Football League 2, is the third highest division of the Football League and the fourth highest overall in the English football league system. They are below the Premier League, the Football League Championship and Football League One and are considered as the most profitable fourth-tier football league in the world.
League Two comprises of 24 teams and was introduced from the 2004-2005 campaign. Earlier it was known as the Football League Third Division. In this division, each club plays each of the other clubs twice (once at home, once away) and are awarded the customary three points for a win, one for a draw and zero for a loss.
At the end of each season the top three teams as well as the winner of the play-offs among the teams which finished in 4th, 5th, 6th and 7th positions, are promoted to Football League One. Likewise the two teams that finished at the bottom of Football League Two are relegated to the Conference National and are replaced by the team that finished first in the Conference National and the team that won the play-offs among 2nd-5th place teams in that division.
In this division in England, there is a mandatory wage cap that limits spending on players’ wages to 60% of club turnover.