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Does the manager level go down?
Say there is a league with mixed levels, what happens if someone gets relegated? If they are the higher level do they go down 2 levels?
Relegation can work, but there needs to be a lot more involved. You can't just send teams down without other things happening. The idea of being sacked could work, but would you take over a level 1 team?
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Failing to promote is enough like relegation to me. To implement an actual relegation would be difficult to do, and would be discouraging to quite a few people (the ones who play but don't necessarily follow the sport).
The only relegation I'd truly like is bot teams relegated to the bit bucket sooner.