If I can't finish in top four, I would tank. Why not? Now I have never faced that situation, yet, but I would rather rebuild at the lower level then higher.
My feeling is only top four advance or everyone from 5 to 8 lose only 10 but I am sure that is a programming nightmare. I have won every league. Okay I am Real Madrid, pay for a good team, but I am one of two level eight teams in a level nine champions league, which is my punishment for spending money. To be honest, Nordeus does all it can to discourage spending too much money even fast trainers slow down if you want to create a eight or nine-star player.