Just in case you didn’t know (exactly) what is major differece between first and second football competition.
The top teams of the leagues in Europe go into the Champions League (teams which took first to third place previous season).
If you get knocked out of the group stages of the Champions League, you go into the UEFA Cup, for example, this is what happened to Bayern and indeed Rangers. I think teams which qualify for UEFA Cup are 4th and 5th seeded in domestic league.
The UEFA Cup is made up of the champions of some of the poorer leagues in Europe, teams who finish just outside the champions league positions in their domestic league, too.
Also into the UEFA cup get the winners of the Intertoto Cup (Aston Villa are representing England) and the winners of the fair play trophy (Manchester City (Fingers crossed) or Fulham representing England.