So as I've said before, I'm still a relative newbie to European football. This is my 2nd year of following it and I've picked up a lot but there's still a lot for me to learn. One thing that has caught my eye this year is that Schalke - now a final 8 in the CL - is also in a relegation battle in the Bundesliga (now they look like they'll be safe but for awhile it was sketchy). Meanwhile, also in the Bundesliga, Werder is out of the CL and also in serious danger of relegation.
This made me wonder: Has a team ever competed in the CL (or European Cup) in the same year that they were relegated in their domestic league. If so, what's the furthest a team has advanced in Europe during a season that ended with domestic relegation? I know Pompey managed the FA Cup final last year when relegated, but has anyone managed the continental equivalent? (Perhaps we just need to send Avram Grant to an overachieving German, Spanish, or Italian club that qualifies for the CL and make it happen... )