It seems an age since Gabriel Magalhaes' penalty flew over the bar in Budapest, breaking Arsenal hearts as PSG were crowned Champions League winners for the second season in a row. But, just over three months on, and Europe's premier club competition is back, with the League Phase draw happening on Thursday.The action will then get underway on September 8, with eight League Phase matchdays across the next four-and-a-half months - before the knockout rounds take centre stage. The drama will run all the way to June 5, with the final at Atletico Madrid's Estadio Metropolitano Stadium.So, ahead of the draw at 5PM, Daily Mail Sport has got you covered by answering all of the key questions around it and the competition for the 2026-27 season. The Champions League draw gets underway at 5PM on Thursday, with PSG having won the competition in the past two seasonsHow does it work?We are now in the third season of the new format for the Champions League, with all teams competing in one single league rather than eight separate groups of four. 36 teams also start in the competition, as opposed to 32 in the previous iteration of the format. Every team plays eight matches in the League Phase, with four of these at home and the other half away.They are split into four pots of nine, with the eight fixtures consisting of two matches against Pot 1, Pot 2, Pot 3 and Pot 4 teams.Teams from the same league and country cannot be drawn against each other until the knockout stage though. There is also the added dynamic of a new rule introduced by UEFA that means the same fixture can't take place in the league phase three years in a row.This means that Liverpool vs Real Madrid and Inter Milan vs Arsenal are effectively outlawed after happening in the past two seasons, although those teams can be drawn against each other if the game is scheduled for the Bernabeu or the Emirates. There is also the added intrigue of Shakhtar Donetsk playing their home matches at Stamford Bridge this season, meaning an English team could draw the Ukrainian side and play at Chelsea's home ground. The draw is conducted by a supercomputer, with the technology picking out opponents at the touch of a button. Every team has two fixtures against Pot 1, Pot 2, Pot 3 and Pot 4 sides in the League PhaseWho's in what pot? The pot that teams go into depends on their UEFA club coefficient over the past five years, meaning that consistent performances in European competitions during that time are rewarded. Pot 1: PSG, Bayern Munich, Real Madrid, Liverpool, Inter Milan, Manchester City, Arsenal, Barcelona and Atletico MadridPot 2: Aston Villa, Manchester United, Borussia Dortmund, Roma, Sporting Lisbon, Porto, Club Brugge, PSV Eindhoven and Real BetisPot 3: Feyenoord, Lille, Napoli, RB Leipzig, Villarreal, Shakhtar Donetsk, Galatasaray, Fenerbahce, Bodo/GlimtPot 4: Slavia Prague, Como, Lens, Sabah, Viking, Slovan Bratislava, AEK Athens, Stuttgart, LASK Last season's runners-up Arsenal are one of eight European heavyweights in Pot 1Which sides should you look out for?Away from the usual European heavyweights, there are a few debutants in the Champions League this season.That includes Como, the Italian club who have had a fascinating rise over recent years.Having dropped to the fourth tier of Italian football and faced multiple bankruptcies, they have been revitalised under a new wealthy ownership group that counts Thierry Henry as a minority investor.Based in a picturesque location, manager Cesc Fabregas - who first joined as an investor - has made them one of the most exciting teams to follow in Europe.Having taken the role in 2024, Fabregas led them to a fourth-place finish in Serie A last season, enough for a spot in the Champions League in what will be their first ever European campaign. Sabah will also make their debut in the competition, after the Azerbaijani side launched a remarkable comeback to beat Israel's Hapoel Beer-Sheva in the final rounds of qualifying on Tuesday.What is even more remarkable is that Sabah were only founded in 2017, meaning that at nine years old, they are the youngest club in history to compete in the Champions League. Austrian side LASK are also in the main tournament for the first time having previously never made it through qualifying. Keep an eye on Bodo/Glimt too, with the Norwegian side back in the competition after enjoying a fairytale run last season that saw them earn victories over Man City and Atletico Madrid before they knocked out Inter Milan in the play-off round.Meanwhile, Real Betis return to the Champions League for the first time in 20 years, while Man United are in after two seasons away.Oh - and for an old face in an opposition dug-out: Watch out for Yaya Toure, who is boss of Slovan Bratislava. Cesc Fabregas's Como will play in the Champions League for the first time after a rapid riseHow does qualification work?24 of the 36 teams make it through the League Phase and into the knockout stages of the Champions League.However, the top eight automatically qualify for the round of 16 and are then seeded.If you finish in the top four, you are given a home second leg tie for the last-16 and quarter-final stages, while if you come in the top two, that advantage stretches all the way to the semi-finals, meaning every point is key. The sides that finish ninth to 24 have to play a play-off tie to progress to the round of 16.Those that are ninth to 16th in the League Phase have the benefit of enjoying the second leg of those match-ups at home. Arsenal were at home in the second leg of their last-16, quarter-final and semi-final ties last season (pictured against Atletico in the final four) after coming top of the League Phase tableWho are the favourites?As usual, those European heavyweights in Pot 1 are expected to challenge for the title.According to Sky Bet, PSG are the favourites to triumph again, with the Parisians priced at 5/1, just ahead of Barcelona and Arsenal on 11/2.Bayern Munich at 6/1 and Real Madrid at 7/1 round off the top five favourites. Full list of favourites (and other selected odds):PSG - 5/1Barcelona/Arsenal - 11/2Bayern Munich - 6/1Real Madrid - 7/1Man City - 9/1Liverpool - 11/1Man United - 18/1Aston Villa - 28/1Como - 50/1 How to watch it in the UK? The Champions League draw will be broadcast on TNT Sports.In terms of the competition proper, it is the final year of the current TV deal, with TNT covering the majority of the games in the UK.However, Amazon Prime Video retain the rights to the top Tuesday match of each gameweek, meaning they have first pick over what they show.From next season, US media giant Paramount will become the main Champions League broadcaster in the UK for four years.