San Miguel Beermen
In 1997, Racela was traded to the San Miguel Beermen for merely two second round picks for the succeeding three years beginning 1998. This became the turnaround of his young career. Under new San Miguel head coach Ron Jacobs, Racela's skills were noticed under a rebuilding Beermen squad of Nelson Asaytono, Freddie Abuda and Mike Mustre.
In 1998, Racela's game would improve and was rewarded with a spot on the Tim Cone-coached Philippine Centennial Team that took home a bronze medal in the 1998 Asian Games in Bangkok, Thailand. A season later, with Racela as its top point guard, San Miguel became the league's new dynasty under Jong Uichico, winning five titles from 1999 to 2001.
2002 Busan Asiad
He made his second stint in the national team in 2002 for the Asian Games in Busan, South Korea. With Racela as point guard, the Nationals made it all the way through the semifinals against host South Korea. In the final minute, Racela scored a three-pointer to give the Philippines the lead. However, after recovering the possession and was fouled, he missed two crucial free throws that could have given the country a four-point lead. Instead, Lee Sang Min's buzzer-beating triple gave the Koreans a dramatic 69-68 victory. Some argued that the blame rested on Jong Uichico's coaching strategy in which he did not set up a plan to ease Racela's pressure from the 15 foot line.
Despite the missed free-throws, Racela continued to shine in his point guard duties with San Miguel. In 2004, he dished his 2,000th career assist and was the starting point guard when the Beermen won another title in the 2005 PBA Fiesta Conference.
Starting in the 2007-08 All Filipino Conference, Racela occasionally played off the bench in preparation for his retirement and later life as an assistant coach.
On August 11, 2010, Racela became the fifth player alongside Ramon Fernandez, Robert Jaworski, Abet Guidaben & Philip Cezar to play at least 900 games in the PBA.
