The season began poorly for Newcastle, with no wins in their first four matches, and manager Bobby Robson was sacked, bringing to an end his five-year tenure at the club.

After nearly five years in charge, Bobby Robson was dismissed on 30 August, following a largely indifferent start to the season and alleged discontent in the dressing room.

Graeme Souness, who had guided Blackburn Rovers to the 2002 League Cup trophy and sixth place in the Premiership in recent years, was appointed as Robson's replacement.

A ten-match unbeaten run following his appointment suggested that Souness could take Newcastle back to Champions League qualification, but following that the club's form dipped.

An unbeaten run in all competitions in February and March was ended in April with a home defeat against Aston Villa; during the match, Lee Bowyer and Kieron Dyer were sent off for an on-pitch fight.

As a result of the incident, later described as "the blackest day" by Shepherd, Bowyer was fined six weeks' wages (about £200,000) and both players received playing bans from the FA.

The event overshadowed the announcement that Alan Shearer (expected to retire that season) had extended his playing contract for a further year and was to take up a coaching role with the club.

Newcastle defeated Portuguese side Sporting Lisbon in the home leg, but were most comprehensively outplayed in the away match and lost 4–1, in the process suffering several injuries.