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Yes, that's the idea. It would be the top four from the previous season, akin to real life. This would give those lower down the league something to aim for. No matter, as it cannot go ahead without the support of every manager
A lofty WFFL Premiership position ought to be incentive enough. What if anyone could enter (or refrain from entering) WFFL Champions League (as has been the case in the 2000/2001 season)*? After all, why relate it at all to WFFL Premiership when your WFFL Champions League squad will bear no relation to your WFFL Premiership squad?

*Unless WFFL is now a brand that can only be used with the sanction of all current 7 managers :lol