Sunderland narrowly avoided the drop following the arrival of enthusiastic new manager Peter Reid, who over the next few years would bring dramatic improvements to the fortunes of the Wearsiders.
Runners-up Reading, another club planning to build a new stadium in the near future, would normally have won automatic promotion, but the latest restructuring of the league meant that they had to navigate a play-off semi-final with fifth-placed Tranmere Rovers.
They easily overcame the Wirral side, whose veteran striker John Aldridge topped the Division One goal charts with 24 league strikes, but then had to take on Bolton Wanderers in a Wembley clash.
The Royals were still 2–0 ahead and looking set to reach the top flight for the first time ever with more than hour left on the clock, but then Bolton pulled a goal back in the 75th minute and followed this with an equaliser to force extra time, and the Burnden Park side ended up winning a dramatic match 4–3 and ending their 15-year absence from the top flight.
Beaten playoff finalists Reading had lined up a site on the southern side of the town as the site of a replacement for antiquated Elm Park, while Luton Town's new owner Simon Kohler unveiled ambitious plans to build a new 20,000-seater indoor stadium, the latest in a string of proposals which had emerged over the last 40 years as possible replacements for the cramped stadium at Kenilworth Road.
The latest restructuring of the league meant that runners-up Brentford missed out on automatic promotion and had to contest the play-offs, where they were beaten on penalties by Huddersfield Town after drawing both legs of their semi-final 1-1.
Wycombe Wanderers finished sixth in Division Two and missed out on the play-offs – and the chance of a third successive promotion – but this didn't deter Norwich City (just relegated from the Premier League) from recruiting Martin O'Neill as their new manager.
Just before the end of the season, the Brisbane Road club was taken over by Barry Hearn, who was swift to sack joint managers John Sitton and Chris Turner, appointing Pat Holland in their place.
As Huddersfield were settling into their new home after more than 80 years at Leeds Road, a number of other Division Two clubs were planning to follow the growing trend of moving to a completely new stadium.
Shortly after the end of the season, Oxford United announced plans to build a new 16,000-seater stadium near Blackbird Leys to replace the dilapidated Manor Ground.
Preston North End were taken over by local heating firm Baxi, who were quick to replace John Beck with Gary Peters as manager.
Debt-ridden Gillingham were saved from the threat of closure by new owner Paul Scally, who appointed Tony Pulis as manager of Kent's only current Football League club.