Celtic, and on 30 August scored his first goals in major competition when he netted twice during a 6–1 win over Stirling Albion in the Scottish League Cup. Playing up front alongside one of either Frank McGarvey or George McCluskey, he went on to score 20 goals in 23 games up to the end of December 1980. He continued to score regularly after the turn of the year, including two goals against Rangers in February 1981 as Celtic came from behind to win 3–1 and go top of the league. Manager Billy McNeill praised Nicholas, stating "It's a wonderful thing for a youngster to score twice in one of those [Old Firm] games", adding that "The world is going to hear a lot more about Charlie [Nicholas]". He finished the season with a total of 28 goals, the last of which he scored in a 1–0 win over Rangers at Ibrox in April 1981, and Celtic went on to clinch the Scottish Premier Division title days later with a win away at Dundee United. Nicholas' form saw him win the 1981 Scottish PFA Young Player of the Year Award. The following season saw Nicholas play less regularly, having lost his place in the side to McCluskey. Worse, he suffered a broken leg in a friendly match against Morton in January 1982 and missed the rest of the season. Nicholas returned to the team for the start of season 1982–83 in August 1982, playing in all six matches of the group stages of the 1982–83 Scottish League Cup, scoring seven goals as Celtic qualified with ease, including a four-goal haul in a 7–1 rout of Dunfermline. Celtic, and Nicholas, continued their goalscoring form into the league campaign, and by mid September Nicholas had amassed a total of 16 goals. Celtic faced Ajax in the first round of the European Cup in September 1982. Nicholas scored a penalty in the first leg at Parkhead, which finished 2–2 on the night. Celtic went into the second leg as underdogs, but an outstanding goal by Nicholas put Celtic ahead in Amsterdam. In a move also involving Paul McStay and Frank McGarvey, Nicholas received the ball from McGarvey and ran into the Ajax penalty box. He evaded two tackles from Ajax defenders before curling an excellently placed left-foot finish past goalkeeper Piet Schrijvers. Ajax later scored themselves, but a last minute winner from George McCluskey