I know '14 is out, but I just found this... and it's awesome!!
I have started as the bottom team in each of the lowest leagues: (Sriwijawa FC, Tauro, Aurora, Pyunik and ASKO) I've released EVERY player and staff they previously had and am trying to raise through the leagues without spending any money on transfers!! (only frees and loans)
FIrst season though, Tauro are in the Championship of Continents :S
not sure why, kinda hoping its because it's randomly generated in the first year and I just got lucky?
I checked the file on the editor and think its awesome that if at any point one of the chosen nations overtakes another of the chosen nations in reputation then it changes the number of teams that register in the competition
Gonna holiday to check the status of the CofC next season before i get ahead of myself!
I know its been awhile, I apologize for not answering all of the questions before now,
I have updated the file for FM2014 so will be releasing it ASAP (tomorrow hopefully, just need to do some testing)
@Motlhen, from what I remember, you are right about the championship of continents, it should sort itself out after the first season (i will check this out for the new version),