AZ held a record of 32 undefeated home matches in European competitions until it was broken by Everton in the 2007–08 UEFA Cup group stage.
[2] In the first round of the UEFA Cup, AZ immediately secured two historic victories against FA Red Boys Differdange of Luxembourg.
At home at the Alkmaarderhout, they secured their biggest-ever win in European competitions with an impressive 11–1 triumph (also marking their largest victory in any official match).
This marked AZ's shortest European campaign until the 2012–13 season as Ipswich Town proved to be the stronger side over two legs, with final scores of 0–0 and 2–0.
[7] Despite their remarkable success in the domestic league, their UEFA Cup journey ended with a narrow 5–4 aggregate loss to Ipswich Town in the final.
Despite a valiant effort, AZ narrowly missed a quarter-final spot, drawing 2–2 and losing 3–2, making it the third time in a row that an English club halted their European campaign.
Despite a win against Paços de Ferreira,[21] AZ struggled in the group stage, suffering their first home defeat in European competition against Everton after a record 32 unbeaten games, and failing to advance further.
Financially, the Champions League windfall was vital, particularly because just before their matches against Arsenal, their main sponsor, DSB Bank, went bankrupt, leaving AZ with sudden high debts.
In the away game, the situation worsened when Standard's goalkeeper, Sinan Bolat, equalised in the fifth minute of injury time from a free-kick, resulting in a 1–1 draw.
[26] This outcome dashed AZ's hopes of securing the third spot in the group, which would have granted them entry into the Europa League knockout phase.
[28] The following year, after securing a fourth-place finish in the Eredivisie, AZ navigated a challenging qualification to reach the Europa League group stage.
However, their European campaign met a swift end in the group stage, notably with a heavy 5–0 defeat at home to Guus Hiddink's Anzhi Makhachkala.
They overcame Atromitos in the play-off round after facing challenges in the return leg, as Markus Henriksen received a red card in the second minute.
Under the guidance of Dick Advocaat, they faced familiar foes PAOK, Slovan Liberec, and Anzhi Makhachkala in the knockout stage.