Merits:
(a) There will be economy of expenditure.
(b) The competition will be keen and intense because of the fear of elimination of a team from the tournament, the moment it is defeated.
(c) The tournament can be finished in a short period of time.
Demerits:
(a) The fixture is drawn purely by lots, there is a possibility of strong teams being matched together in the early round or even in very first round getting eliminated. Further matches become boring for spectators.
(b) A good team may itself get eliminated by chance and has no more chances to show its real worth.
(c) A winner of a particular round may have to wait to meet the winner of another match of the same round or previous round.
(d) Because of the fixture or in-built defects in this type of tournament, sometime the true winner of the tournament in not decided.
To remove these demerits or to overcome the major drawbacks seeding is done.