Unlike the previous three years, the champion’s league would only now have one group phase and then automatically reach the knock out phase.
Group A, featured Lyon, Bayern Munich, Celtic and Anderlecht. Lyon ran out group winners and Bayern Munich edged out on second position.
Arsenal ended up Group B winners despite losing two matches and Lokomotiv Moscow joined them through the group. Inter Milan could only manage third place as they suffered a 5-1 thumping at the hands of Arsenal. Eventual finalists, Monaco, won Group C, as Deportivo and PSV Eindoven battled it out for second. Deportivo finished the higher as they had scored more goals whilst on level points.
Manchester United won five of their six group matches to walk Group E as Stuttgart joined them through to the knock out phase.
The favourites, Real Madrid coasted to the top of Group F, claiming 14 out of a possible 18 points. They were joined into the knockout phase with FC Porto, who finished clear of Marseille by seven points.
The much strengthened Chelsea, ended five points clear of second place, Sparta Praha in Group G, while in Group H, AC Milan and Celta Vigo qualified.
Chelsea met Stuggart in the second round; Chelsea won the first leg 1-0 which proved to be enough to sail them into the last eight. Perhaps the surprise of the second round was the Manchester united and FC Porto clash. Porto took at 2-1 lead with them from the first leg and United could only manage a 1-1 draw in the return fixture. The mouth watering tie of the round was between Real Madrid and Bayer Munich. Nothing could separate the two sides after a 1-1 draw in the first leg; however Madrid won the second match 1-0 to award themselves with a birth in the quarter finals.
AC Milan proved to strong for Sparta Praha as they thumped them 4-1 in the return leg after a boring 0-0 draw.
The quarter finals produced an all English tie, between Arsenal and Chelsea, after a 1-1 draw at Highbury in the first leg, Chelsea came out 2-1 on top at Stamford Bridge. Monaco surprisingly beat Real Madrid on the away goals rule and eventual winners, FC Porto beat Lyon 4-2 on aggregate.
Monaco met Chelsea in the first semi final, with Chelsea hot favourites to reach the final. However they read the script wrong as Monaco humiliated them to a 3-1 defeat in France. The return leg was a glorious affair for Monaco as they held the mighty English club to a 2-2, which in turn booked Monaco’s tickets to the final. FC Porto beat Deportivo de La Coruna of Spain in the other semi final.
The 2004 champions league final was a one sided affair between Porto and Monaco.
After dominating the vast majority of the first half, Carlos Alberto Gomes gave Porto the lead in the 39th minute with a well taken goal. Porto continued to press forward during the second half and it came to no surprise when Deco scored with twenty minutes remaining. Porto sealed victory with 15 minutes to spare as substitute, Dmitri Alenichev scored the winning goal for Porto as they were winners of the champions league and everyone hailed their manager, Jose Mourinho a hero.