Due to the Bosman ruling, restrictions on foreign players in matchday squads were lifted from this season.

The tournament was won by Borussia Dortmund in a 3–1 final victory against defending champions Juventus.

The national champions of the associations ranked 1–7, plus the title holders, all received a bye to the group stage, while the national champions of the associations ranked 8–23 entered in the qualifying round.

The remaining national champions from the associations ranked 24–48 were only allowed to participate in UEFA Cup.

Atlético Madrid, Auxerre, Fenerbahçe, Rapid Wien and Widzew Łódź made their debut in the group stage.