Collingwood will be part of the Perth Scorchers side, who have been drawn in Group A, and will represent one of the favourites for the tournament, which is being held in South Africa and is being broadcast live on British Eurosport 2.
But the man who led England to World Twenty20 success back in 2010 believes that Yorkshire and Hampshire will rue the loss of key players, along with the fact that they have to qualify for a spot in the main draw.
“Yorkshire obviously have to get through to the main round and it will be tough,” Collingwood told the Yorkshire Post. “It is the same for the other English county, Hampshire, who have lost Simon Katich. He was a big player for them last season but is now with us at Perth.
“A lot of the teams involved in the Champions League have a lot of international experience. There are some big names. And they will want to do well. Having said that, that is all they are at the end of the day. Names.”
He added: “If you play well as a team then that can help you go a long way. As long as Yorkshire understand their roles in the team, they can cause an upset.
“It is amazing what can happen in David v Goliath type situations. Sometimes, you look at the two teamsheets and think you know who the winner is. Yorkshire have to play on that and see what happens.”
Asked who he predicted would win the tournament, that offers a cash prize of £1.6m for the winning side, Collingwood said: “Other than ourselves?
“Delhi (Daredevils) will be a hard team to play against. You look at the quality they have with players like Kevin Pietersen and they will be decent.
“Playing against the likes of Virender Sehwag, David Warner, Morne Morkel will be tough for anyone. And you can name loads like them, right through the entire tournament.”
The Champions League T20 gets under way on Tuesday with the final to take place on Sunday October 28.
Tuesday Match Facts:
Auckland Aces v Sialkot Stallions: Martin Guptill has hit 893 international T20 runs for New Zealand at an average of 30.79, only Brendon McCullum (1,655) has hit more for the Black Caps.
Yorkshire Carnegie v Uva Next: Yorkshire’s David Miller hit more sixes (21) than any other player in England’s domestic T20 competition this year.