[1] Despite being placed in administrative receivership for the majority of the season following a turbulent change of ownership and having a rigorous transfer embargo imposed as a result, signing players only with the Football League's special dispensation, the club accrued more points than in the previous campaign.
Stability did not last for long, however, as the end of the season saw controversy erupt after an unidentified consortium gained control of the club, later revealed to be headed by businessman John Gurney.
Former Luton player and Hartlepool United manager Mike Newell was announced as the winner on 23 June 2003, though it is widely believed[3] that Kinnear accumulated the most votes, only to reject a return to the club as he refused to work with Gurney.
With the fallout surrounding the takeover still occurring, including the fact that players and staff had not been paid for two months, managing director John Gurney was summoned by the Football League to explain the situation.
Hatters Holdings, now majority-owned by Trust in Luton, deliberately placed the club into administrative receivership on 14 July to successfully force out John Gurney after a turbulent 55 days in charge.
While the club elected to use youth team goalkeepers Rob Beckwith and Dean Brill, they did sign Portsmouth winger Courtney Pitt on a one-month loan.
[13][14] The same day, as a result of funds being freed up by Thorpe's move, Luton signed young Coventry City striker Gary McSheffrey on a one-month loan.
An injury to regular striker Steve Howard pushed Adrian Forbes into a first-team role, where he excelled with six goals in six games, winning the award for October's top scorer in the division.
[19] In terms of transfers, Luton extended Gary McSheffrey's loan for a further month after he had scored eight goals in thirteen games and Nathan Abbey left after two weeks, the club signing experienced goalkeeper Marlon Beresford from Bradford City as a replacement on a three-month contract.
[21] On 28 November, a bid from a company called Bill Tomlins Sport Management was received, with the administrators intending to meet with representatives in early December to progress the sale.
Southend United knocked the club out of the Football League Trophy early in the month, but Luton did progress to the third round of the FA Cup with a 2–0 win over Rochdale.
January began with Luton beating Bradford City 2–1 in the FA Cup, ensuring the club reached the fourth round of the competition for the first time since the 1994–95 season.
Two consecutive 2–2 draws left the club in ninth place in the league, but a 1–0 defeat to Tranmere Rovers in front of Kenilworth Road's biggest crowd of the season on 24 January knocked Luton out of the FA Cup.
[23] Three days later, Luton signed a replacement in the form of Danish goalkeeper Morten Hyldgaard on a free transfer from Scottish Premier League side Hibernian until the end of the season.
[29] On the pitch, Luton started March in a similar fashion to February with a draw and a win to place themselves in sixth position, just inside the play-offs, with twelve games left to play.
Irish defender Kevin Foley, a regular in the Luton first-team despite officially being classed as a youth player, agreed a two-and-a-half-year professional contract on 10 March.