The offside rule was brought in around the early nineteenth century and was similar to rubgy.
Due to variations in how offside was implemented under various sets of rules a meeting in 1948 was held and a uniform set of rules drawn up (Cambridge Rules). Offside has been a part of the game since it was invented. The implementation has changed over the years.
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Law 11, Offside, was created because prior to its inception, some players made a habit of posting near the opponent's goal, waiting for the opportunity to score on a long ball played in his direction. The English football associations decided that this was unsporting and contrary to the spirit of the game, so they created a rule that forced players to be more sporting and fair about their positioning when playing the ball down field. Specifically, a player who is closer to the opponent's goal than the ball, the second-last opponent, and the halfway line is considered to be in an offside position, and will be penalized with an indirect free kick if he becomes involved in play by playing the ball, interfering with an opponent, or gaining an advantage from being in that position. Exceptions were created for corner kicks, goal kicks, and throw-ins, because it was decided that being in an offside position immediately after these restarts was not unsporting and that the Laws of the Game are not intended to compensate for the strategic and tactical mistakes of players..
Jackie Milburn, ex Newcastle player, had the idea of staying in the opposition box so the League dicided to create the offside law.