The team was widely tipped for relegation in 2011–12, following the pre-season departures of attacking players Danny Graham, Will Buckley and Don Cowie for a combined total of £4.5million.

Following an early run of two wins from the first thirteen league fixtures, Watford's form improved, and the team lost just one of the remaining eleven games in 2011.

The team regained its form between February and April, and finished the league season in the top half of the table for the first time in four years.

[6] Taylor resigned as chairman at the end of the season,[7] and in June 2012 a company owned by Giampaolo Pozzo and his family took control of the club.

[9] They also sold Young Player of the season Will Buckley to Brighton & Hove Albion for £1m, and Liam Henderson left on a free transfer to York City.

Off the field, Watford's chief executive Julian Winter left the club shortly after the sales of Buckley and Graham, and manager Malky Mackay joined Cardiff City the following week.

On 21 June, 20-year-old defender Tom Aldred left on a season-long loan to Inverness Caledonian Thistle and Nathan Ellington went on a free transfer to Ipswich Town.

[154] In April Watford announced the fates of the remaining second-year scholars; Hamilton Forbes, Smith and Tumwa were given professional contracts, Akubine, Horner, Kalu and Gardner were released, while Bevans had his scholarship extended due an injury which kept him sidelined from October.