The Philadelphia Manz won this edition defeating defending champions Paterson True Blues after four attempts to complete the final.

They later dropped the league idea in favor of having each team play home and away games for the cup ties.

The first round draw took place at the AFA meeting in Ball's Union Hall at East Newark, New Jersey on October 10, 1896.

At the AFA meeting on November 28, 1896, at Union Hall in Newark, the committee drew for the semifinals pairing O.N.T.

The Manz team of Philadelphia reached the final having only one loss during the season, that being to the losing semifinalist Kearny Athletics on Christmas Day.