Tony Waddington was appointed as the club's manager in June 1960. He first joined the club in 1952 as a coach, before being promoted to assistant manager in 1957. Waddington pulled off a significant coup by enticing Stanley Matthews – now 46 years old – back to the club, 14 years after he had departed. The return of Matthews helped Stoke to an improved 8th position in 1961–62. Promotion was achieved in the next season, with Stoke finishing as champions. In their first season back in the 1st Division, 1963–64, Waddington guided Stoke to a mid-table finish. Matthews remained influential, as he helped the club to the League Cup final in 1964, although this followed by defeat to Leicester City over two legs.
Waddington counted on experience; Dennis Viollet, Jackie Mudie, Roy Vernon, Maurice Setters and Jimmy McIlroy were players signed in the latter stages of their careers. Matthews was awarded a knighthood for services to football in the 1965 New Year's Honours list. This was followed by his 701st, and final, league appearance for the club against Fulham in February 1965, shortly after his 50th birthday. Gordon Banks, England's 1966 World Cup-winning goalkeeper, joined in 1967 for £52,000 from Leicester. Regarded as the best goalkeeper in the world, Banks proved to be a shrewd signing for Waddington as he helped the club maintain stability in the 1st Division. For one season in 1967, Stoke City F.C. was imported as the Cleveland Stokers of Cleveland, Ohio playing in the United Soccer Association. The team emerged as runner-up of the Eastern Division, failing one point short of the championship final.
The club won its first significant trophy on 4 March 1972 in the League Cup Final. Stoke beat favourites Chelsea 2–1 in the final at Wembley Stadium in front of a crowd of 97,852 spectators.Preceding this victory, Stoke had progressed through 11 games in order to reach the final. This included four games with West Ham United in the semi-final; the two-legged match was replayed twice. Stoke fared well in the FA Cup; the club progressed to the semi-final stage in both the 1970–71 and 1971–72 seasons. However, on both occasions Stoke lost to Arsenal in a replay. This was Stoke's best cup run for some time, with them failing to defeat top-flight opposition in the FA Cup from 1975 until a 3–1 victory over Arsenal in the 5th Round of the 2009/2010 competition. Stoke City also became the first First Division side to play a match on a Sunday, when they faced Chelsea on 27 January 1974
The Butler Stand Roof was blown off in a storm, in January 1976. The repair bill, in the region of £250,000, put the club in financial trouble, which was only eased by the sales of Alan Hudson, Mike Pejic and Jimmy Greenhoff for a combined sum of £440,000. With the team depleted, relegation proved inevitable in 1976–77 season. Waddington, after a spell of 17 years in charge, left the club after a 1–0 home defeat to Leicester in March 1977.
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