He was replaced by Steve Smith in early January 1987, but Town only survived relegation by 3 points, which became a sort of precursor to the debacle that the next season's campaign would bring.

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The start of the season was mixed, with no win until 20 September, when they surprisingly beat near neighbours and early league leaders Oldham Athletic 5–4 at Leeds Road despite playing with ten men for much of the game.

The main highlight of the early part of the season was a Littlewoods Cup tie against Arsenal, in which Town only lost 3–1 on aggregate.

Smith's tenure started with a 4–2 defeat by Norwich City, but during March, Town went on a run of six consecutive draws – a club record.