Football Club de Gueugnon was founded in 1940. Upon the club's creation, it earned the nickname "Les Forgerons" ("The Blacksmiths"), due to having strong support from the commune's local steelworks area. The club won the Championnat de France amateur in 1947 and, by 1970, were playing in the second division of French football. In 1974, inspired by playmaker Casimir Nowotarski, Gueugnon reached the second division promotion play-offs, but lost to Rouen. In 1979, the club won the second division title, however, due to the club's non-professional status and its inability to gain professional status by the start of the 1979–80 season, it was not allowed to participate in the first division.