After success in 1960 and 1961, the title of best side in South America had gone to Pele's Santos side, and then to Argentinean giants Independiente, but in 1966 Penarol become the first side to win the Copa Libertadores 3 times.
Penarol had retained some of the outstanding players from the side that won the Title twice in the early 60's, such as the great Alberto Spencer, who still holds the honour of leading goalscorer in Copa Libertadores history, and added to it with some exciting talent, which came together to produce another legendary side.
Penarol often lined up in an attacking 4-2-4 formation, and won their 3rd Copa Libertadores in thrilling fashion, coming from 2v0 down to beat River Plate 4v2 in the Final.
The Uruguayan side would go on to record a run of 56 League games without defeat, adding Domestic Titles to their trophy collection, but would have to wait almost 2 decades before winning the Copa Libertadores again.
Like their South American counterparts Real Madrid had been knocked off their perch after a period of domination to become Champions of Europe again.
Only a 32 year old Gento remained a regular from the Madrid side that won 5 straight European Cups, in a side that were younger and fitter, but lacking the flair of the legendary Spanish side of the early 60's.
1st Leg - Montevideo, Uruguay - Penarol 2v0 Real Madrid
"Los Manyas" came away from the home leg of their tie with a 2v0 victory against the European Champions, after 2 strikes from Spencer.
There were outstanding performances from Goncalvez, Abbadie, Rocha and Spencer on the night, impressing against a Madrid side employing a tight marking game, following their opponents all over the pitch.Spencer's first came via the penalty spot, tucking away the effort despite Betancort in goal for Madrid, guessing the correct way.
The Spanish side's chances of drawing level were dealt a blow when Pachin was sent off with just over 20mins of the tie remaining.
It was Spencer who made sure of the victory on 79mins, as the ball fell invitingly for the legendary forward after the ball fell loose from a team mate on the edge of the box. Spencer carried on his run and slipped the ball under Betancort for his second. As the game came to it's conclusion there were "Ole's" cascading down from the terraces with every piece of skill from the home side.
2nd Leg - Madrid, Spain - Real Madrid 0v2 Penarol (Penarol win 4v0 on aggregate)
Before the game there was an arrogance emanating from the Spanish press that the home side would win and force a deciding play off in Lausanne Switzerland. They had criticised the pitch at the Centenario and felt sure that on a better surface in Madrid, the Spanish side would prevail.
They had even booked their tickets for the playoff and announced special excursions to the Madrid supporters for the trip to Switzerland.
But this arrogance did not extend to Madrid legend Ferenc
Penarol arrived in Madrid without fuss, with Penarol Coach Maspoli, revealed that he would rotate the marking of Gento, and declared "We will try to hang on at the beginning, which will be very hard, but little by little, we will play our Football at a rhythm that is easy on us".
The pattern of play was established with the visitors sitting deep and showing their power and pace on the counter attack. Betancort had already been called upon to thwart one attack before Penarol had the ball in the net, with the Referee coming to the home sides rescue, ruling the goal out for an infringement.
But 5mins later and Penarol did manage to make an effort count after a decision went against the home side when the Referee pointed to the spot after a Penarol attacker was sent sprawling, even though it appeared the defender had got the ball. After much protest Rocha stepped up to convert the spot kick for a lead just shy of the half hour mark.
Madrid did initially respond well, and had a rare sight of goal, but Amancio did not make best use of the opportunity, which was easily pushed wide.
Ironically Madrid were enjoying their best spell of the game when the Uruguayan side doubled their lead. There was no element of luck for this effort as Spencer cut the Madrid defence apart before slotting the ball past the Betancort after 37mins.
It had been a fantastic display of Football from Penarol with even the Madrid press saying "Penarol was pure genius, all the players were top class"
