Sean Dyche believes Manchester City’s dramatic collapse has changed the “feel” around the Premier League champions and given their opponents more confidence.

The Everton boss accepts his team face a considerable task at the Etihad Stadium on Boxing Day, against “one of the best managers of all time” in Pep Guardiola and a squad of world-class talent. But he reckons teams are unlikely to be so intimidated when they visit the Premier League champions of the last four years after City suffered nine defeats in 12 games. Dyche claimed this collapse brought back memories of Manchester United losing the fear factor following the departure of Sir Alex Ferguson.

“You go there to win anyway, but when the facts and statistics change, they reinforce the belief,” he said.

“That’s just how sport works. When a team starts to suffer a little, it strengthens the faith of those who go there. Do you remember the time when Sir Alex’s people went to Old Trafford? Even if they were down, you would think they would score in Fergie’s playing time. But when that started to fail a little bit, people started to think they could give it a try. It’s not about a team or a result, but about that feeling, and that’s what changes. If we can capitalize on that, that’s great, but it’s not that simple. They are still a quality group of players.”

Dyche claims City’s problems underline the Premier League’s strength after an era of sustained success under Guardiola. “The challenge of the Premier League means that sometimes it can even happen to the superpower clubs. The Premier League is that powerful. Man City, with their strength and depth and great manager, still have a hard time competing against anyone. They haven’t been able to do that for years, but they have now, and that’s because the Premier League is a strong league. They’re great at what they do, but one or two injuries, one or two nasty results, and suddenly it looks and feels different.”

Dyche expects several Everton contract issues – including his own – to be decided before the end of the season following the Friedkin Group takeover. Everton have eight experienced players in the final year of their contracts, including Dominic Calvert-Lewin, Idrissa Gueye and Abdoulaye Doucouré, while Dyche and director of football Kevin Thelwell are also out of contract next summer.

“These people need to come in and get an overview of who they are working with,” Dyche said. “I can’t imagine that they won’t do anything until the end of the season, neither for me nor for the players or anything. They are well aware that we have to move on, but I don’t expect that one day they will say: “Here’s a 10-year contract.” You have to earn the right. They will also do their homework.”