Founded in 1928, the club decided against using the
controversial official title of the city – Londonderry – in its name, while also deciding against continuing the name of the city's previous main club,
Derry Celtic, so as to be more inclusive to all identities and football fans in the city. Derry City was granted entry into the
Irish League in 1929 as professionals and was given permission by the
Londonderry Corporation to use the municipal Brandywell Stadium. It repeated the feat in 1937, but did not win another major trophy until 1949, when it beat
Glentoran to win its first
Irish Cup. It won the Irish Cup for a second time in 1954, beating Glentoran again, and for a third time in 1964 – that year also winning the
Gold Cup – despite the club's conversion to part-time status after the
abolition of the maximum wage in 1961. This led to the club's first entry into European competition, in the
1964–65 UEFA Cup Winners' Cup, in which it was beaten by
Steaua Bucharest 5–0 on aggregate. The club won the 1964–65 Irish League and subsequently became the first Irish League team to win a European tie over two legs, beating
FK Lyn 8–6 on aggregate in the
1965–66 European Cup. Derry did not complete the next round, as the
Irish Football Association (IFA) declared its ground was not up to standard, as it played in a mainly nationalist city and so had come to be supported largely by Catholics. The IFA,
Belfast-based, was dominated by Protestants and it was widely suspected that it would rather have been represented by a traditionally
unionist team. Relations between the club and IFA quickly deteriorated. There had been no significant history of sectarian difficulties at matches in the first 40 years of the club's history, but in 1969 the
Civil Rights campaign disintegrated into communal violence, which were followed by 30 years of
the Troubles. Despite the social and political unrest, Derry reached the
Irish Cup final in 1971, in which it was beaten 3–0 by
Distillery. As the
republican locality surrounding the Brandywell saw some of the worst violence, numerous unionist-supported clubs were reluctant to play there. The
Royal Ulster Constabulary (RUC) ruled the zone unsafe for fixtures. With no other feasible local ground available, Derry had to travel to the majority unionist town of
Coleraine, over away, to play its "home" games at the
Showgrounds. This situation lasted from September 1971 until October 1972 when, faced with dwindling crowds (most Derry fans were unwilling to travel to Coleraine due to the political situation and the longer journey) and dire finances, the club formally requested permission to return to the Brandywell. Despite a new assessment by the security forces concluding that the Brandywell was no longer any more dangerous than any other league ground and a lifting of the security ban, Derry's proposal fell by one vote at the hands of its fellow Irish League teams. The club continued as a junior team during the 13-year-long 'wilderness years', playing in the local Saturday morning league, and sought re-admission to the Irish League. Derry's first match in the new system was a 3–1
League of Ireland Cup win over
Home Farm of
Dublin at the Brandywell on 8 September 1985. The return of senior football to Derry attracted large crowds. The following year – 1987 – Derry won the First Division along with promotion to the Premier Division, remaining there for the subsequent 22 years. The club reached the 1988
FAI Cup final, but lost to
Dundalk. The next season – 1988–89 – the club was financially forced to revert to semi-professional status but
Jim McLaughlin's side managed to win a
treble; the league, the
League Cup and the FAI Cup. Qualifying for the
1989–90 European Cup, it met past winners,
Benfica, in the first round. in the
2006 FAI Cup semi-final at the
Sligo Showgrounds on 29 October The club has been beset by financial problems and was on the verge of bankruptcy due to an unpaid tax bill in 2000. An extensive fund-raising effort was undertaken by local celebrities and the city's people to save the club from extinction. Derry played high-profile friendlies against clubs such as
Celtic,
Manchester United,
Barcelona and
Real Madrid to raise extra money. This helped keep the club in operation, but difficulties remained and Derry nearly lost its Premier Division place in 2003 when it finished ninth and had to contest a two-legged relegation-promotion play-off with
local rivals,
Finn Harps. Derry won 2–1 on aggregate after extra-time at the Brandywell and remained in the top flight, avoiding further damage. With finances secured, the club became the first in Ireland to be awarded a premier UEFA licence in 2004. Derry re-introduced professional football and its form improved, as it finished second in 2005. Derry's 2005 League Cup victory also saw the club qualify for the cross-border
Setanta Cup for the first time in 2006. It entered the
2006–07 UEFA Cup's preliminary rounds, beating
IFK Göteborg and
Gretna to reach the first round where it faced
Paris Saint-Germain; Derry finished second again in 2006, but went on to win the FAI Cup and League Cup
double. It qualified for the 2007
Setanta Cup, as well as the preliminary rounds of the
2007–08 UEFA Champions League, and was accepted into the restructured Premier Division for 2007. The club had a disappointing league campaign in 2007, finishing seventh despite being pre-season favourites. It did manage to win its eighth
League Cup, though, thanks to a 1–0 victory over
Bohemians at the Brandywell. The club, by owing huge debts, was expelled from the League of Ireland by the FAI in November 2009 for breaching the Participation Agreement and dissolved, but a new Derry club using the "Derry City" name joined for 2010 – with the FAI allowing it into the First Division By January 2010 with a new board, the new chairman, Philip O'Doherty was reported to have acquired a new kit deal with Hummel. Additionally, O'Doherty was quoted in the
Derry Journal referring to the application to play in the First Division: {{cquote|...I'm confident that we've provided a quality application and we're hopeful that we will secure the necessary UEFA Licence to compete in the First Division. By the end of October 2010 Derry had clinched the First Division title and with it, promotion back to the premier division after winning 1–0 away at Monaghan United in the last game of the season. Derry's top goalscorer that season,
Mark Farren, who finished with a tally of 20 goals, scored the winner against Monaghan before retiring from football for medical reasons as he sought to fight a benign tumour located in his brain. Farren died of cancer in February 2016 and his number 18 shirt was retired by the club. == Colours and crests ==