From the mid-1960s Scottish football was dominated by the Celtic side managed by Jock Stein. In 1969 Waddell returned to Rangers as manager, following the sacking of Davie White. The team did not win any League Championships with Waddell as manager, but won the Scottish League Cup in 1971, ending a run of six years without a trophy. In 1972 Waddell led Rangers to a European Cup Winners' Cup win, beating Dynamo Moscow 3–2 in the final in Barcelona. Later in 1972 he handed the management reins to his assistant, Jock Wallace, Jr. having been Rangers boss for 134 games.