Chairman Maurice Cadman's warning about the clubs financial difficulties was expected to spark an exodus of players. However, only Steve Dowman left in the summer joining Wrexham for £75,000.

The club received their first-ever shirt sponsorship from Royal London Insurance but failed to win in the opening eight games. Beating Millwall 3-0 in the ninth attracted national coverage. Sergeant Frank Ruggles of Essex Police marched on the field and tried to arrest Lions' defender Mel Blyth for swearing.

Manager Bobby Roberts signed unknown Highland Leaguer Kevin Bremner for a club record £25,000 and six consecutive home wins saw Colchester well placed at Christmas. But when Trevor Lee moved to Gillingham in a club record deal worth £90,000 form dipped and United slipped down the table. On transfer deadline day, Roberts matched the record fee in recruiting Roger Osborne and also paid £15,000 each for Roy McDonough and Phil Coleman.

Eight games without a win ensured relegation by just two points, and amid news of a 25,000 all-seater stadium development along the Avenue of Remembrance came the stark reality of a new all-time lowest attendance of 1,430 at the final day win over Carlisle and the season's average of just 2,641. Roberts was given a vote of confidence despite relegation. The Council refused the new stadium plans and re-iterated their covenant on Layer Road that prevented any activity other than football.

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Wikipedia