Goal! II carries on from Goal! in which Santiago Muñez, who is now a successful footballer, gets transferred from Newcastle United to Real Madrid. He has a good start for Real as he substitutes former teammate Gavin Harris, who is in a bad form, in several matches. However, life later starts to get complicated when his half-brother Enrique learns that he is related to Santiago and shows him a picture of his mother, who left his father years ago and now lives in Spain. When Enrique tells him this, Santiago drives off, after which his life goes downhill, as his fame and success begins to catch up with him, and he becomes more arrogant and selfish. When he gets his first chance to start for Real Madrid, he messes up after a bad tackle on Valencia's Vicente Rodríguez, leading to him getting sent off. Soon after, he gets into an argument with his girlfriend Roz Harmison, who leaves, frustrated, to return to England, and he rashly fires Glen Foy as his agent when he gets him an advertising deal with a sushi restaurant, even though he hates sushi. Things get worse when he gets injured. Santiago also has an affair with Jordana Garcia. Enrique drives off in Santiago's Lamborghini after he has an argument with Santiago; he crashes and badly injures himself. Santiago also beats up a photographer and gets arrested, and when he calls Glen for help, he is firmly informed that he is on his own. After getting released, he goes to meet his mother.
Real Madrid reach the final of the UEFA Champions League and they are lined up against Arsenal. Santiago learns that Harris has to get a place in the starting line-up in the final in order to ensure an extension of his contract and a place in his national squad for the upcoming FIFA World Cup. He asks the coach to let Harris start instead of him in the final. Harris gets his chance, but almost squanders it by fouling Arsenal player T.J. Harper in the first half – which leads to a penalty and Real Madrid concede the first goal. The final turns into a nightmare for Real Madrid after this. The star players can hardly build any chances and Arsenal have a firm grip on the game in the first half, creating chances and threatening Madrid with attack after attack. Only a superb performance from goalkeeper Iker Casillas prevents Real Madrid from crashing out before half time.
Contrary to speculation and despite the bad form of Harris, Santiago is brought onto the field – but not as a substitute for Harris. In the second half the two former Newcastle teammates get the chance to link up at the front to bring Madrid back to life. However the game gets worse as Arsenal go 2-0 up. Arsenal are denied an even bigger lead when Casillas superbly saves another penalty. Following this save, Real Madrid get to counter-attack with Santiago finally creating a moment of magic with Harris, who scores to make it 2-1. In the final few minutes of the game, with Madrid needing a goal to stay in the game, Santiago gets his chance and makes it 2-2. Finally, with only seconds left, David Beckham scores from a free kick to win the Champions League for Real Madrid. The film ends with all the Football Stars cuddle and ends with Real Madrid play Sneaky and Underhanded "To be continued...."