The 1997–98 season was a disaster turned into a success for Huddersfield Town. After a closed season of little activity in the transfer market, Town started the 1997–98 season disastrously and, after some questionable signings and tactical decisions, Brian Horton was sacked in October 1997 as the club lay at the foot of Division One. Thirty-six-year-old former Huddersfield, Bradford City and Newcastle United central defender Peter Jackson was drafted in as Horton's replacement in October and turned the club's fortunes around drastically. He immediately installed the experienced former Wales manager Terry Yorath as his assistant. Given a generous transfer budget by the board, Jackson captured experienced pros such as former Welsh internationals Barry Horne and David Phillips in addition to powerful local-born striker Wayne Allison from Division 1 rivals Swindon Town. He also managed to rejuvenate players such as Marcus Stewart and, particularly, the previously inconsistent Paul Dalton to the extent that the club finished a respectable 16th in the final table.

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The start of the season was the worst in the entire history of Huddersfield Town. Town won none of their first 14 league games. In fact the only games they won were two Coca-Cola Cup ties against Bradford City and more surprisingly Premier League side West Ham United (they eventually lost 3-1 on aggregate against the Hammers) Manager Brian Horton dropped popular keeper Steve Francis for the televised game against Nottingham Forest. Town lost the game 2-0 and two days later Horton was shown the door.

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