This chapter discusses the influence league table performance can have on an institution, affecting its student recruitment, its funding and even its leadership. It goes on to discuss the impact on the sector as a whole in encouraging a frantic reputation race and leading institutions to concentrate their efforts and resources on a single area of activity, research, with detrimental effects on individual institutions and the sector. The chapter also looks at the potential positive impact that a well-designed ranking system could deliver and outlines the basic principles and ‘lessons learned’ that would shape the design of such a system.