Sir Alex Ferguson believes English clubs may need to raise their game in Europe to remain competitive now that teams in many other countries are being bankrolled by billionaire investors.

An English club has featured in six of the past seven Champions League finals and four teams from the Premier League going through to the group stages has become the norm in the last decade. This year, however, it would be a surprise if all four make it, because Manchester City's fate is out of their hands and Manchester United and Chelsea both need a result from tricky final group games this week. All four could still qualify, though equally Arsenal could find themselves the sole English representatives in the worst case scenario.

The United manager prefers to think that the group stages have become tougher instead of demonstrating that English football is in decline. "There are some strong teams out there now, I think we may have to bring our game up a little bit and make sure we don't underestimate the group stages," Ferguson said. "We should have won our home game against Basel and because we didn't we now need to go there and make sure they don't beat us. We could find our casualness in the first game costs us."

The Swiss side will not be widely expected to cause a shock, though elsewhere in Europe Ferguson has noticed the influx of money into unlikely outposts. "You can see the amount of money that some of the Russian teams are spending and the number of Brazilians they have playing for them now," he said. "Then you notice that Apoel Nicosia have qualified already, they are funded by a wealthy guy. I think they have only three Cypriot players, the rest are from other countries. And of course there's the team [Anzhi Makhachkala of Dagestan] that lives in Moscow but play a four-hour plane journey away. Their owner has just built them a brand new stadium, complete with all the roads leading up to it. There is certainly some money around in the game, and over time it is bound to make a difference. It represents a different challenge for teams from this country."

It could be argued that the English have no right to complain, the Premier League having introduced the world to the dubious concept of gross financial inequality and positively welcomed owners willing to sink vast amounts of their wealth into hitherto ailing football clubs, though as Ferguson has been able to prove on the domestic scene instant wealth does not automatically translate into instant success. This country's two richest clubs are arguably the ones most in danger of an early exit this week, not that Ferguson views his own side's task as particularly easy.

"We've got the players to get us through in Switzerland, no question about that, but they will have to perform," he said. "This is our last chance and it won't be an easy game. Basel do need to win though, and that might give us some sort of advantage. At some point in the game they will have to try and beat us, but I can't see them going at us straight away. I think they will try and wait as long as they can but as we know from the first leg they are capable of scoring goals."

Over at Manchester City, Roberto Mancini takes a more sanguine view of English prospects. "The Premier League is still top quality and I think at least three English teams will qualify," he said. "Of course I hope four, but we will need help, whereas I think Chelsea and Manchester United still have a big chance." City entertain Bayern Munich on Wednesday and may be capable of beating a team that have already qualified, but must still hope that pointless Villarreal can do them a favour by defeating Napoli.

That is quite a slim hope and the City manager is already confronting the possibility of playing in the Europa League after Christmas. "If we end up in the Europa League we would try to reach the final and win it," he said. "We would have a good chance, and it is a trophy this club would like to win.I think Manchester City must always try to win, and I don't believe being in the Europa League will make it harder to compete for the Premier League title. If we get through in the Champions League it will be exactly the same, except everyone would be very happy about that."