Relegated and promoted teams will switch draft picks with each other. That means that the promoted teams will get a top pick at their new league level and get a great boost to establish themselves in their new league. The relegated team on the other hand will get a bottom pick at their new, lower, league level.
*Note that these affected draft picks may actual be owned by another team if acquired through trading.*
Does this feature still work as described here or has this been changed in one of previous upgrades?