After the relative success of the previous season, Swindon make an unspectacular start in the new Division Three, ending in a mid-table position. Bert Head's youth policy begins to bear fruit though - Ernie Hunt becomes the youngest player to ever wear a Town shirt, and future captain Keith Morgan and Bobby Woodruff make their debuts.
With the league structure being changed at the end of the season, Swindon are hot favourites to end up in the new Division Four - but they surprise everyone by finishing fourth - just three points off of Brighton's promotion spot - a team which the Town manage just one point against.
Despite the disaster of the previous season, the board still don't appoint a manager, instead installing full-back Geoff Fox as a player/coach. A terrible start, losing five of the first six, finally changes their minds - though not many are interested in taking over a poor side with little money to spend. Eventually, Bert Head bravely accepts the position in October - by which time the Town are only separated from the bottom on goal average, and they remain in 23rd position for the rest of the season.
The board make the decision to not appoint a new manager straightaway - instead preferring to pick the team themselves, with the input of the club's trainers. Despite a decent run in the cup, the league campaign is a disaster - with the Town suffering the ignominy of finishing bottom of the league for the first time in their history. They successfully apply for re-election, winning 42 votes compared to Peterborough's eight.
The club sell some houses to provide Lindley with some transfer funding, and most of it is squandered on Matt Gemmell, who makes just eight league appearances. After only one away win all season, the Town finish even lower than last year, in 21st place - and Lindley is handed his notice in February, before his departure in April.
Maurice Lindley is appointed as manager, but he is unable to make an immediate impact, as the Town end up with the same points total as the previous season, but finish two places lower for their lowest league finish to date. Swindon also suffer an embarrassing exit in the FA Cup, losing to Hastings 4-1 - the first defeat to non-league opposition in eighteen years.
Despite the efforts of Maurice Owen, who bags 21 goals, the Town have another unsatisfactory season, ending up in 18th place, and being dumped out of the cup 7-0 by Manchester City. The club's record transfer sale is broken in November, when Northern Irish international goalkeeper Norman Uprichard is sold to Portsmouth for £9,000. After four years of steady decline, Louis Page is relieved of his managerial position.
Another inconsistent season in the league sees the Town finish in 16th place - and they slump to their highest ever league defeat in the process, when they lose 9-0 at Torquay. Despite this, they go on another good cup run, getting to the Fifth Round, and the attendance record is also broken, when 28,140 turn up at the County Ground to see a 0-0 draw with First Division Stoke City.
Not a single player in the side manages to get into double figures, and after a lowly league finish, five of the Town's forwards are placed on the transfer list. The Town board also accept a £14,000 bid from Norwich for star player Maurice Owen - but he rejects the move. On a brighter note, floodlights are installed at the County Ground, and 3,171 people turn up to watch the first floodlit game in April - a 2-1 friendly victory over Bristol City.
The Town are hit by injuries - and at the turn of the year, nine players sit on the sidelines, including keeper Frank Boulton, who breaks his leg in a game at Notts County. As a result, the results suffer, and the Town finish 14th. At the end of the season, top scorer Morris Jones is sold to Crystal Palace, and a number of older players leave the club.