The club was founded after a businessman called Amadeu Horn gave football kits to a group of boys. These boys played a match against a team called Humaitá, and won. On September 1, 1923, at Amadeu Horn's house, the club was founded, being called at that time Avahy Football Club. The team was named Avahy after the Battle of Avahy, in the Paraguayan War In the following year, it became the first Santa Catarina State Championship champion.