The 1935 South American Championship in Lima acted as the qualifying stage for the 1936 Olympic tournament. Uruguay won undefeated and Argentina came second, but neither took up their Olympic spot because of economic issues. Peru, who had come third, duly represented South America. The Peruvian team began the competition with a 7–3 win over Finland, after which it faced Austria, managed by Jimmy Hogan and popularly known as the "Wunderteam", in the quarter-finals. After the game ended 2–2, Peru scored twice in extra time to win 4–2. Peru expected to then face Poland in the semi-finals, but events off the pitch led to the withdrawal of Peru's Olympic delegation before the match.