In the transfer window, Palermo spent millions adding players to their squad, including Aimo Diana, Mark Bresciano, Fábio Simplício and Amauri, but sold World Cup winner Fabio Grosso to Internazionale.
For the first time in its history Palermo sat on top of the Serie A table in September 2006 after beating Catania 5–3 at home in the Sicilian derby.
A serious knee injury for Amauri caused Palermo to replace the powerful striker, and Uruguayan Edinson Cavani and Polish Radosław Matusiak were signed in the Winter transfer market, together with midfielders Maurizio Ciaramitaro and Guillermo Giacomazzi.
[4] The victory was however followed by two further defeats, including an upset 3–2 away loss against last-placed team Ascoli, already relegated to Serie B, which left the rosanero in seventh place, the last UEFA Cup spot, only three points above Atalanta.
[5] Guidolin's return brought two victories, to Siena[6] and Udinese, clinched fifth place in the final table, qualification to the UEFA Cup 2007-08 for the third consecutive time and broke its previous record of 53 points of two years before.