Gil Merrick was installed as the new manager of Birmingham City in 1960 and spent four years in charge at the club until 1964. He guided the club to winning their first major domestic trophy as they defeated Aston Villa in the 1963 League cup final. It was match that was decided on the penalty shoot out after the score line was all square after ninety minutes. Stan Cullis took over as manager in 1965 and he saw his Birmingham side slum in to the second division as they finished of fin bottom position. It was a division they would stay in until the year 1972.
They reached the semi finals of the league cup in 1967; however suffered defeat against QPR in the last four and they came close to an FA Cup final in 1968, losing against West Bromwich Albion in the semi finals of the cup competition.
The Blues came close to suffering relegation at the end of the 1969 – 1970 campaign as they finished it off in 18th position.