By Dylan Butler

PHILADELPHIA - For the third consecutive tournament, Panama bowed out of the CONCACAF Gold Cup at the hands of heavily favored USA.

Following losses in the 2005 final on penalty kicks and in the 2007 quarterfinals, the Americans ousted Panama on an extra-time penalty kick, a decision several Panamanian players vehemently argued when the final whistle blew.

However, when Gary Stempel takes a step back, it's not the controversial penalty called against his team that the Panama coach will remember. It's a courageous, and some would say unlikely, run to the knockout phase after losing to Guadeloupe in the opening game of the group stage.

A 1-1 draw against Mexico in a physical affair at Reliant Stadium, a 4-0 drubbing of Nicaragua at University of Phoenix Stadium and a hard-fought 2-1 extra-time loss to the United States at Lincoln Financial Field proved to Stempel that Panamanian football is indeed on the upswing.

"Panama is obviously growing as a football nation," Stempel said Saturday night. "We're a well-respected rival in Gold Cup. We've reached the finals, quarterfinals, stuff like that. I think that we obviously made a real game of it today. It's a sad way to lose a game."

Winning the UNCAF Nations Cup for the first time in February preceded Panama's run to the CONCACAF Gold Cup knockout stages. Los Canaleros defeated Costa Rica on penalties in the final after upsetting Guatemala and host Honduras.

"A lot helped in February when we won the Nations Cup, which is the first time Panama's done that," Stempel said. "That motivated a lot of people, it's got people excited again."

Panama was supposed to host the UNCAF Nations Cup, but the Federación Panameña de Fútbol backed out, citing the lack of a sufficient stadium. That is part of the struggle that Stempel faces.

In a country short on financial resources, inadequate facilities are a major stumbling block. In addition, Panama, which has already been eliminated from World Cup qualification, doesn't have a domestic league as well entrenched as those nations it competes against.

But Stempel, who previously coached several of the players on the Panamanian Under-20s and Under-23s, has developed a winning formula…a mix of what he's learned in England with the players' athletic instincts.

"It was a combination of trying to bring in the best of the British attributes, the discipline and the tactical organization that I brought in and I let the Latin flavor take over," he said.

Despite being eliminated from the Gold Cup, in a space of 10 days, Los Canaleros gave the USA and Mexico all they could handle.

As a result, Panama can take pleasure in the present and get excited about the future.

"Everything you do in your life you have to enjoy," Stempel said. "Obviously there's a time to work but you have to enjoy your work and the group you're with. I think that's one of the strengths of this team."