Kaposvári Rákóczi Football Club was founded in August 1923 by the staff at a local sugar factory. The side started out as an amateur team, but turned professional the following year. Over the years, they have spent much of their time in the second and third tiers of the Hungarian league system, only occasionally reaching the top flight. The team takes its name from Francis II Rákóczi, the leader of the Hungarian uprising in the early 1700s.
After many seasons of yo-yoing between divisions two and three, Kaposvári Rákóczi appointed Imre Mathesz as their head coach in 1973. Under his management, the club finally gained promotion to the top flight tier and played their first season in the division in 1975-76. Their initial stay in the league lasted three seasons, before relegation at the end of 1977-78. They returned to the first division for brief spells in 1980 and 1987, but were relegated after one season on both occasions. Their most recent promotion to the top flight came at the end of the 2003–04 campaign.
To date, Kaposvári Rákóczi have failed to win any of the major honours on offer in Hungarian football. They have won the division two title on two occasions. Their best performances in the top division came in between 2005 and 2008, when they achieved two 7th place finishes, followed by a 6th place finish in 2007–08.
Over the years, several full Hungarian internationals have played their club football for Kaposvári Rákóczi, with notable examples including István Avar and Győző Burcsa. In 2009-10, Serbian stiker Nemanja Nikolić played for the club and finished the season as the league's top goalscorer.
The team play their home matches at the Stadion Kaposvár Rákóczi. The venue is able to hold a maximum of 7,000 supporters, with 4,500 seated spaces.