A league is a group that has one common interest. A league can have more than one groups that compete against each other.
Ex. A Bowling league - there can be multiple teams that play against each other
A tournament is a competition where multiple teams play against each other. There is normally a 1st place winner, 2nd place, and 3rd place.
So in a league (groups) the groups can have a tournament.
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Union is by far more popular than league as there are multiple countries that have union as there national sport and only 1 in league. PNG is the only country that has league as its national sport. In Australia it is a close battle but as for the rest of the world union dominates.
Also in league Australia is the only country that seems to win apart from the odd upset from New Zealand, whereas for union the competition is much closer and with the growth of the game in tier 2 countries the game is becoming even closer.
Without a doubt union is by far decades ahead of league
Union has 15 plays per side on the pitch at any one time - league is 13. They have removed the flankers from the game
Lineouts and rucking have been taken out of the game
These are the main differences