Benfica competed domestically in the Primeira Divisão and the Taça de Portugal, and participated in the European Cup after winning the previous league.

With only Mário Moinhos and António Barros as new additions, Benfica started their campaign on 9 September, losing in the opening day to Boavista.

However a poor end of the month saw them lost the undefeated streak at home dating back to 1965, and fall to fourth place, four points from the top.

In the second half of the season, Benfica collected consecutive wins and reached second place by early February, while also cutting their gap to Sporting to just one point.

In March, a loss in Estádio das Antas with Porto and a draw with Beira-Mar, put Sporting with a four-point lead again.

In the Portuguese Cup, Benfica reached the Taça de Portugal final after beating Porto away, but lost the competition on extra-time to Sporting.

[3][4] In his fourth year, Hagan's pre-season saw Benfica play in Angola and Mozambique, three games with América with three different results.

[12] On 25 September, on a day of Eusébio testimonial match, in a training session, Humberto Coelho, Toni and Nelinho did an exercise wrong and Jimmy Hagan lost it.

[9] Now solely focused in the Primeira Divisão, on match-day 9, Benfica dropped points on the road again, drawing 0–0 with Vitória de Guimarães.

[19] The draw allowed Sporting to open a four-point gap with five matches to go, practically ending any hope of Benfica renewing their league title.

[22] On 31 March, Benfica played Sporting in Estádio de Alvalade and defeated them by 5–3, cutting their rivals lead to two points.

[25] In May, in the last three matches with both teams separated by a point, Sporting won the title on 20 May after defeating Barreirense, while Benfica drew with Setúbal.

[25] On 2 June, Benfica secured their presence in the Taça de Portugal final after a 3–0 win against Porto on Estádio das Antas.