In 1888, William McGregor a gentleman from Perthshire and a director of Aston Villa F.C was the main force between meetings held in London and Manchester involving 12 football clubs, with an eye to a league competition. These 12 clubs would later become the Football League's 12 founder members. The meetings were held in London on 22 March 1888, the main concern was that an early exit in the knockout format of the FA cup could leave clubs with no matches for almost a year, not only could they suffer heavy financial losses, but fans didn't often stick around for that long without a game, when other teams were playing. Matters were finalised on the 17 April in Manchester.

McGregor had voted against the name The Football League, as he was concerned that it would be associated with the Irish Land League[2]. But this name still won by a majority vote and was selected. The competition guaranteed fixtures and members for all of its member clubs. The clubs were split equally among North and Midlands teams and Southern teams, who were still strictly amateur.

A rival English league called the Football Alliance operated from 1889 to 1892. In 1892 it was decided to formally merge the two leagues, and so the Football League Second Division was formed, consisting mostly of Football Alliance clubs. The existing League clubs, plus three of the strongest Alliance clubs, comprised the Football League First Division.