During the summer transfer window, the club sold two key first team players; academy graduate Adrian Mariappa and goalkeeper Scott Loach.

Zola later revealed that the club only loaned the players due to the short time scale between the completion of the take over and the transfer deadline day.

In the subsequent months however, Watford began to win more matches and started to climb the table, rising to hold the 6th position by the end of 2012.

Following the departures of Mackay, Danny Graham, Will Buckley and Don Cowie, Watford were tipped for relegation in 2011–12 by some bookmakers and media organisations.

[8] Former manager Graham Taylor stepped down as chairman shortly before UEFA Euro 2012, indicating that he felt the timing was right and that he was keen to pursue other interests.

Amid reports that the club's bondholders had called in the debt due to an act of default, Bassini stressed that the decision to sell was his alone, motivated by a wish to spend more time with his family.

[12][13] The club also stated an intention to make use of the Pozzo family's scouting network, which identifies players for Udinese in Serie A and Granada in La Liga.

[14] Watford did not make any signings prior to the start of their pre-season campaign, but their first two games against local featured triallists Daniel Pudil and Almen Abdi.

[18] Watford's only pre-season game at Vicarage Road was a testimonial match for defender Lloyd Doyley, who started his professional career at the club in 2001.

Before the start of the game, Doyley entered the pitch to a guard of honour, and when he was substituted with 15 minutes remaining he was given a standing ovation by supporters.

[26] Premier League and Championship clubs enter the FA Cup at the third-round stage, where they are joined by the 20 winners from the second round for a total of 64 teams.

The permanent transfers were goalkeeper Manuel Almunia and centre back Fitz Hall, following the departures of Scott Loach and Adrian Mariappa in their respective positions.

[33] Two days later, Scott Loach – the team's most-used goalkeeper from the previous season – transferred to Ipswich Town, the club he supported as a child.