They exited both cups in the third round, although they took Second Division Newcastle United to a thrilling extra time finale at Layer Road where the hosts were eventually defeated 4–3.

After the board had decided to keep the faith in Bobby Roberts for the new season despite relegation, the introduction of the three-points for a win format for this year helped Colchester hit the top of the league by November 1981, scoring an impressive 41 goals.

The U's also reached the third round of the FA Cup, taking Newcastle United to a replay before losing 4–3 following extra time at Layer Road.

A £25,000 outlay brought forward John Lyons to Layer Road who promptly scored on his debut as Colchester thrashed promotion rivals Sheffield United 5–2 in front of the Match of the Day cameras.

However, a host of injuries and suspensions in the latter stages of the season saw Colchester drop down the table, and as such the board requested Roberts resign in April.