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Penarol dominated their country's Primera Division for much of the 1990s and in 1997 they secured a fifth title win in succession. A team that featured much decorated veterans Pablo Bengoechea and Carlos Aguillera won neither the Apertura or the Clausura Championships, but stepped up in the play-offs to overcome firstly bitter rivals Nacional, then Defensor to win the overall title.
The club's Libertadores campeign ended in the Quarter-Finals with a narrow aggregate defeat to Racing Club.
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