Ok, the top league in England is the Premier League or Premiership. It consists of 20 teams and they each play eachother twice in a season (Aug- April) once home, once away. 0 points for a loss, 1pt for a draw and 3pts for a win. The top team at the end of the season are crowned champions. There are also two domestic knockout competitions during the season. The Carling Cup (or whoever else sponsors it) and the FA (Football Association) Cup. These are knockout competitions and involve the teams from the lower leagues as well.
Then we have the European Competitions. The top four teams from the Premship, La Liga (Spanish League) Serie A (Italian League) and all the other leagues in Europe, go to the Champions League. This is the cream of the crop, the best teams in the world, the most prestigious club competition in the world. Then we have the UEFA Cup (United European Football Associations) here teams that finished 5th-8th in their domestic league, compete in a not so prestigious cup.
Hope that clears a few things up.
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