The club failed to make the playoffs, attendance continued to fall, and the team was losing money.
Prior to the season beginning, the Senators sent future Hall of Fame defenceman King Clancy to the Toronto Maple Leafs in exchange for $35,000($604,231 in 2023 dollars)[1] and two players.
Art Gagne led the team offensively, scoring a team high 19 goals, while tying with Bill Touhey for the lead in points at 30.
Bill Beveridge would also get some time in goal, however he finished 0–8–0 with a GAA of 3.69.
The Senators would finish in last place for the first time in team history, and with the Great Depression taking its toll on the team, the NHL allowed the Senators and the Philadelphia Quakers to suspend operations for the 1931–32 NHL season, renting the players for $25,000.