
What helped the club succeed in the 1930s, 1940s and 1950s were the strict limits imposed on foreign players. In most cases clubs could only have three foreign players in its squad, meaning that at least eight local players had to play in every game. While Real Madrid and FC Barcelona circumnavigated these rules by playing dual citizens such as Alfredo Di Stéfano, Ferenc Puskás, José Santamaria and Ladislao Kubala, Athletic adhered strictly to their cantera policy, showing little or no flexibility. The 1960s, however were dominated by Real Madrid and Atlético Bilbao only had a single Copa del Rey win in 1969.
Like international teams, the club has used the grandparent rule, allowing the recruitment of some players of Basque descent. This enabled Barcelona-born Armando Merodio to play for the club. However during 1960s other players such as Jesus María Pereda, Miguel Jones, and José Eulogio Gárate were overlooked. Although none of them were Basques by birth, all three grew up in the Basque Country and could be classified as naturalised Basques. Garate even had Basque parents.
On a positive note the 1960s saw the emergence of an Athletic legend José Ángel Iribar. The 1970s were not much better with only another single Copa del Rey win in 1973. In December 1975, before a game against Real Sociedad, Iribar and the Real captain Ignacio Kortabarria, carried out the Ikurriña, the Basque flag and placed it ceremonially on the centre-circle. This was the first public display of the flag since the death of Franco. In 1977 the club reached the UEFA Cup final, only losing on away goals to Juventus. By now the club had reverted to using the name Athletic Bilbao.
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