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Barwell were formed at the start of the 1992–93 season as the result of a merger between Hinckley Football Club of the Midland Football Combination and Barwell Athletic Football Club, who had previously played in the Leicestershire Senior League.
Three years later they changed to their current name (which came from the fact that their ground is by Warwick Racecourse) and soon afterwards switched to the Midland Football Combination, where they were champions in 1988 and runners-up in 1989.