[1][2] They shared that stadium with Rovaniemen Palloseura (RoPS),[3] who played in the top tier Veikkausliiga, until their relegation at the end of the 2020 season.

Following a bankruptcy filing in 2012, the club was re-formed as a new entity under the name FC Santa Claus Arctic Circle.

The origin of the name stems from the legend that Rovaniemi, Finland, is the home town of Santa Claus.

2021 manager and head of the youth division, German-native Ralf Wunderlich, described FC Santa Claus as the second team of the city of Rovaniemi, with Rovaniemen Palloseura (RoPS) being the more successful and competitive club, but supporting "the spirit of Christmas".

[23] The club's first crest had a picture of Santa waving while controlling a football, but it was later changed to one of him sitting at a writing desk checking his naughty and nice lists.

[23] The following season, in 1994, they won the Midnattsolscupen (Midnight Sun Cup), an invitational tournament held in Sweden.

[26][27] In 1997, they faced English Premier League club Crystal Palace in a friendly, losing 5–0, with 5000 spectators showing up to the match.

[31] They re-formed the club under a new association using the name FC Santa Claus Arctic Circle, but the Finnish Football Association denied their request to transfer their position in the third tier Kakkonen to the new group, ruling that they had not taken over the debts of the previous group.

[33][34] Also in 2013, they reached an agreement with fellow Rovaniemi side RoPS in the top tier, to form a partnership and act as their affiliate club.

[24][40] The 2016 season was a difficult one for the club, who, following the departure of several experienced players, were relegated back to the fourth tier after the season, after earning only eight points from two wins and two draws in 22 matches, conceding 102 goals,[8] including a 16–0 loss to AC Kajaani in which they were only able to field 11 players in total, including three goalkeepers, two of whom were forced to play striker, due to a rash of injuries.

[24][41] Later that year, they travelled to Beijing, China, arranged by their new Chinese sponsors, to play a friendly match on Christmas Eve against a group of Chinese celebrities called the China Doubi all-stars, and won the match by a single goal.

[45] A couple of the players decided to register a team in an 8v8 recreational league organized by the referee's association of Rovaniemi, continuing the club unofficially.

[46] It was announced FC Santa Claus would be re-launched in the Finnish national system, for the 2021 season.

[18][47] The new re-launch would be headed by the youth club, FC Santa Claus Juniorit,[48] which had continued to operate, and would revert to the Rovaniemi logo.