Being relegated is a test indeed! (7)
I believe the answer is:
demoted
'being relegated' is the definition.
(I've seen this before)
'test indeed' is the wordplay.
I cannot really understand how this works, but
'test' could be 'mot' and 'mot' is found in the answer.
The remaining letters 'deed' is a valid word which might be clued in a way I don't see.
This explanation may well be incorrect...
'is a' is the link.
Can you help me to learn more?
(Other definitions for demoted that I've seen before include "Relegated" , "Downgraded" , "Put down in rank" , "Slippery fish" , "Reduced in rank" .)