Valencia CF was established on 5 March 1919 and officially approved on 18 March 1919, with Octavio Augusto Milego Díaz as its first president; incidentally the presidency was decided by a coin toss. The club played its first competitive match away from home on 21 May 1919 against Valencia Gimnástico, and lost the match 1–0.
Valencia CF moved into the Mestalla stadium in 1923, having played its home matches at the Algirós ground since 7 December 1919. The first match at Mestalla pitted the home side against Castellón Castalia and ended a 0–0 draw. In another match the day after, Valencia won against the same opposition 1–0. Valencia CF won the Regional Championship in 1923, and was eligible to play in the domestic Copa del Rey cup competition for the first time in its history.
1940s: Emergence as a giant in Spanish football
The Spanish Civil War halted the progress of the Valencia team until 1941, when it won the Copa del Rey, beating RCD Espanyol in the final. In the 1941–42 season, the club won its first Spanish La Liga championship title, although winning the Copa del Rey was more reputable than the championship at that time. The club maintained its consistency to capture the league title again in the 1943–44 season, as well as the 1946–47 league edition. They would conclude their decade of success by winning the 1949 Copa del Rey, this would mean Valencia would end the decade with a record of three La Liga titles and two Copa del Reys. This would cement their name in Spanish football.
In the 1950s, the club failed to emulate the success of the 1940s, even though it grew as a club. A restructuring of Mestalla resulted in an increase in spectator capacity to 45,000, while the club had a number of Spanish and foreign stars. Players such as Spanish international Antonio Puchades and Dutch forward Faas Wilkes graced the pitch at Mestalla. In the 1952–53 season, the club finished as runners-up in the La Liga, and in the following season, the club won the Copa del Rey, then known as the Copa del Generalísimo.
1960s: European successes in the Fairs Cup While managing indifferent league form in the early 1960s, the club had its first European success in the form of the Inter-Cities Fairs Cup (the forerunner to the UEFA Cup). In the 1961–62 season, Valencia beat FC Barcelona in the final. The 1962–63 edition of the Inter-Cities Fairs Cup final pitted Valencia against Croatian club Dinamo Zagreb, which the Valencians also won. Valencia was again present in the Inter-Cities Fairs Cup final in the 1963–64 season, but was defeated 2–1 by Real Zaragoza from Spain.
1970s to early 1980s: More domestic and European glory Former two-time European Footballer of the Year award winner Alfredo Di Stéfano was hired as coach in 1970, and immediately inspired his new club to their fourth La Liga championship and first since 1947. This secured Valencia its first qualification for the prestigious European Cup, contested by the various European domestic champions. Valencia reached the third round of the 1971–72 competition before losing both legs to Hungarian champions Újpesti Dózsa. In 1972 The club also finished runners up both in La Liga and the domestic cup, losing to Real Madrid and Atletico Madrid, respectively. The most notable players of the 1970s era include Austrian midfielder Kurt Jara, forward Johnny Rep of the Netherlands and Argentinian forward Mario Kempes, who became the La Liga topscorer for two consecutive seasons in 1976–77 and 1977–78. Valencia would go on to win the Copa del Rey again in the 1978–79 season, and also capture the European Cup Winners' Cup the next season, after beating English club Arsenal in the final, with Kempes spearheading Valencia's success in Europe.
Mid to late 1980s: Stagnation and relegation
In 1982, the club appointed Miljan Miljanić as coach. After a disappointing season, Valencia was in 17th place and faced relegation with seven games left to play. Koldo Aguirre replaced Miljanić as coach, and Valencia barely avoided relegation that year, relying on favorable results from other teams to ensure their own survival. In the 1983–84 and 1984–85 seasons, the club was heavily in debt under the presidency of Vicente Tormo. The club finally hit rock bottom when it was relegated at the end of the 1985–86 season, and riven with internal problems such as unpaid player and staff wages, as well as poor morale. The club was relegated for the first time after 55 years in Spanish top-flight football.
Arturo Tuzón was named the new club president, and he helped steer Valencia back to La Liga. Alfredo Di Stéfano returned as coach in 1986 and Valencia won promotion again following the 1986–87 season. Di Stéfano stayed on as coach until the 1987–88 season, when the team finished in 14th position in La Liga. Bulgarian forward Luboslav Penev joined the club in 1989, as Valencia aimed to consolidate their place in La Liga. For the 1988-89 La Liga season Valencia finished third, which would signal their competitiveness going into the 1990s.
1990s: Re-emergence In the 1989-90 La Liga season Valencia finished runner-up to Real Madrid, and thus qualifying for the UEFA Cup.
Guus Hiddink was appointed as head coach in the 1991–92 season, and the club finished fourth in the League and reached the quarter-finals of the Copa del Rey. In 1992, Valencia CF officially became a Sporting Limited Company, and retained Hiddink as their coach until 1993.
Brazilian coach Carlos Alberto Parreira, fresh from winning the 1994 FIFA World Cup with the Brazil national team, became manager at Mestalla in 1994. Parreira immediately signed Spanish goalkeeper Andoni Zubizarreta, Russian forward Oleg Salenko, and Predrag Mijatović, but failed to produce results expected of him. He was replaced by new coach José Manuel Rielo. The club's earlier successes continued to elude it, although it was not short of top coaching staff like Luis Aragonés and Jorge Valdano, as well as foreign star forwards like Brazilian Romário, Claudio López, Ariel Ortega from Argentina, and Adrian Ilie from Romania. In the 1995-96 La Liga season, Valencia finished second to Atletico Madrid but were unable to capture the title after a close fought race.
Valencia would struggle for the next two seasons but the 1998-99 La Liga season would signal the start of one of Valencia's most successful periods in their history, they won their first trophy in nineteen years by winning the 1998-99 Copa del Rey under Claudio Ranieri and also qualifying for the UEFA Champions League.
2000s: Return to the top of Spanish and European football Valencia started the 1999–00 season by winning another title, the Spanish Super Cup, beating FC Barcelona. Valencia finished third in the league, four points behind the champions Deportivo de La Coruña and level on points with second placed Barça. But the biggest success was in the UEFA Champions League; for the first time in its history, Valencia reached the European Cup final. However, in the final played in Paris on 24 May 2000, Real Madrid beat Valencia 3–0.
It was also Claudio López's farewell, as he had agreed to sign for the Italian side Lazio, also leaving was Farinós for Internazionale and Gerard for Barcelona. The notable signings of that summer were John Carew, Rubén Baraja, Roberto Ayala, Vicente Rodríguez, and the Brazilian left back Fábio Aurélio. Also bought that season was Pablo Aimar in January. Baraja, Aimar, Vicente, and Ayala would soon become a staple of Valencia's dominance of the early 2000s in La Liga.
Valencia started the championship on the right foot and were top of the league after 10 games. After the Christmas break, however, Valencia started to pay for the top demand that such an absorbing competition like the Champions League requires. After passing the two mini-league phases, Héctor Cúper's team eliminated Arsenal in quarter-finals and Leeds United in the semi-finals, and got ready to face Bayern Munich in the big final; Valencia had reached two European Cup finals in a row. This time, the final was to be played in Milan at the San Siro on 23 May. Gaizka Mendieta gave Valencia the lead by scoring from the penalty spot right at the start of the match. Goalkeeper Santiago Cañizares then stopped a penalty from Mehmet Scholl, but Stefan Effenberg drew level after the break thanks to another penalty. After extra time, it went to penalties, where a Mauricio Pellegrino miss gave Bayern Champions League glory and dealt Valencia a second-straight exit in the finals. Valencia went on to slip to fifth place in La Liga and out of Champions League contestation for the 2001–02 season. The final game of the season meant Valencia only needed a draw at the Camp Nou against Barcelona to seal Champions League qualification. Los Che lost to Barcelona 3–2 at the Nou Camp, with a last minute goal from Rivaldo resulting in Barcelona qualifying for the Champions League while Valencia missed out.
The president, D. Pedro Cortés, resigned for personal reasons and left the club in July, with the satisfaction of having won one Copa del Rey, one Spanish Super Cup, and having been runners-up in two successive Champions League finals. D. Jaime Ortí replaced him as president and expressed his intention on maintaining the good form that had made the club so admired on the European circuit. There were also some changes in the team and staff. Rafael Benítez, after helping CD Tenerife to promotion, replaced Héctor Cúper after the latter became the new coach at Internazionale in Italy. Among the playing squad, Gaizka Mendieta, Didier Deschamps, Luis Milla, and Zlatko Zahovič left, while Carlos Marchena, Mista, Curro Torres, Francisco Rufete, Gonzalo de los Santos, and Salva Ballesta all arrived.
From 1999 up until the end of the 2004 season, Valencia had one of their most successful periods in the club's history. With a total of two La Liga titles, one UEFA Cup, one Copa del Rey, and one UEFA Super Cup in those six years, no less than five first class titles and two Champions League finals had been achieved.
That first game against fellow title rivals Real Madrid produced a significant and important victory. This was followed by a record of 11 games won consecutively, breaking the existing one set in the 1970–71 season, the season they had last won the La Liga title under Alfredo Di Stéfano.
After a defeat in A Coruña against Deportivo on 9 December 2001, the team had to win against RCD Espanyol in the Estadi Olímpic Lluís Companys to prevent falling further behind the league leaders. Valencia were 2–0 down at half time, but a comeback in the second half saw Valencia win 3–2.
In the second part of the season, Benítez's team suffered a small setback after losing 1–0 in the Santiago Bernabéu to Real Madrid, but they recovered from this setback and achieved four victories and two draws in the following six games against UD Las Palmas, Athletic Bilbao, Deportivo Alavés, Real Zaragoza, and Barça.
In one of those crucial games that they would come up against Espanyol, Valencia were trailing 1–0 half-time and a man down too with the dismissal of Carboni, but after two goals from Rubén Baraja, Valencia achieved a 2–1 victory. Furthermore, Real Madrid's defeat in Anoeta to Real Sociedad left Valencia with a three-point lead at the top of the table.
The final game of the season was at La Rosaleda to face Málaga CF, on 5 May 2002, a date that has gone down in Valencia's history. The team shut itself away in Benalmádena, close to the scene of the game, in order to gain focus. An early goal from Roberto Ayala and another close to half-time from Fábio Aurélio assured them their fifth La Liga title, 31 years after their last title win.