The Souness Revolution began with the signing of England internationals, goalkeeper Chris Woods and centre half Terry Butcher.
Northern Ireland international Jimmy Nicholl rejoined the club and Colin West was brought in to partner Ally McCoist in attack.
Graeme Souness was sent off for a tackle on George McCluskey in the centre circle, with both teams displaying a lack of discipline at that moment.
They won the League Cup, defeating Celtic 2–1 with goals from Ian Durrant and Davie Cooper.
Rangers reached the third round of the UEFA Cup after beating Ilves Tampere and Boavista before being knocked out by Borussia Mönchengladbach on the away goals rule.