Knattspyrnufélag Reykjavíkur, also known as KR, was established in Reykjavik as Iceland's first football club, an important milestone in the country's sporting history. The establishment was led by a group of enthusiastic Icelanders inspired by the emerging popularity of football across Europe. Football was relatively new to Iceland, but the sport quickly captured the imagination of the youth, leading to the formation of the club. By creating a formal structure, KR provided a framework for organized competitions and encouraged local participation in football.

The early years of the club were characterized by enthusiastic community engagement and competitive spirit. KR quickly became the focal point for football in Iceland, recruiting players from the local population, and fostering a love for the game. Despite the challenging climatic conditions and geographical isolation, the club managed to thrive and foster a generation of players who would go on to represent Iceland in various competitions.

The influence of Knattspyrnufélag Reykjavíkur extended beyond just the sporting realm; it became a platform for social gatherings and events, contributing to community cohesion. As the popularity of the sport grew in Iceland, so too did the aspirations of Icelandic athletes. Over the decades, KR contributed significantly to the national identity, playing a vital role in heralding the phases of national sport development that continued well into the 20th century.