Third place in the league went to Crystal Palace, who occupied their highest-ever finish, but were denied qualification for the UEFA Cup due to Liverpool being readmitted to European competition a year earlier than anticipated.
The final relegation place went to Sunderland on the last day of the season when they lost 3–2 to Manchester City, while Luton Town stayed up by beating already-relegated Derby County 2–0.
Sheffield United started the season disastrously, with four points from their opening sixteen matches, before getting their first win, 3–2 at home to Nottingham Forest just before Christmas.
Villa turned to Czechoslovak coach Jozef Venglos, the first foreign manager in the First Division, but their league form slumped and they finished 17th.
Still only 31, former England defender Terry Butcher became the youngest manager in the Football League in November when he accepted Coventry City's offer to become player-manager following the sacking of John Sillett.