Ever since they exist, the Elite rules have been complicated and changed multiple times. That's why I'm going to try to write them all down and try to explain every single scenario. If you like them, I guess we can finally have 'official' rules that are written down somewhere.
So first off, the basic Elite rules.
-You can only challenge the Elite 4 if you have an entire set of Kanto/Johto Badges and the first Elite and at least one Admin or Moderator is online.
-Only one person can challenge the Elite 4 at a time.
-You cannot be Kanto and Johto Elite at the same time. If you have an Elite/Champ spot, you need to quit your position to challenge the other E4. (I propose changing this in being able to choose what position you want, even if it eliminates the risk you'll have to take.)
-In Elite fights, everything is allowed. There is a limit of 6 dogs though.
-If someone gets knocked off the Champion Arena, he loses the fight.
-Elites time out after being offline for 5 days.
-Elites will forfeit only forfeit their fight after 5 days offline.
Now we need to differentiate different scenarios.
1) There are 4 Elites and a Champion.
In this case, you have to beat the 4 Elites to move on and fight the Champion. If you win, you are the new Kanto/Johto Champion. If you lose you don't get any spot. (This is the current rule. I would change this so that if you lose against the Champ, you become the 4th Elite and everyone gets bumped down 1 spot, the first Elite losing it.)
2) There are 4 Elites and no Champion.
If there are 4 elites and no Champion, you have to beat the 4 Elites to become the new Champion. If you lose against an Elite, you won't get anything and the Elite 4 will remain as it is.
3) There are less than 4 Elites and a champ.
If you challenge while there are less than 4 Elites, you can be sure to get at least an Elite spot. The Elite spots will be filled from the top to the bottom, so if there are 3 Elites, there isn't a 1st Elite. If you lose against an Elite, for example the 4th, you will become the 3rd Elite and the other ones will be bumped down. If you beat all the Elites you will fight the Champ. If you win you become his spot and he will become the 4th Elite and if you lose you will become the 4th Elite.
4) There are less than 4 Elites and no champ.
In this case, the same rules as in point 3) apply, except that if you win against the 4th Elite, you become the Champion.
5) There are no Elites and a Champion.
If you have a complete set of badges, you will fight the Champ. If you win you will become Champion, if you lose you will become the 4th Elite.
6) There are no Elites and no Champion.
Congratulations! You are the new Champ!
I hope this helps in clearing up the rules a bit and the propositions I made will be accepted. Please inform me if I forgot to mention anything.