Willie Bell was installed as the new manager of Birmingham City in 1975 and spent two years in charge at the club. His two years in charge saw the club improve from a 19th position finish in to a comfortable 13th place finish at the end of the 1976 – 1977 season. The 1977 – 1978 campaign saw the arrival of new manager Jim Smith at the club. The blues crashed out of the FA cup in fourth round as they suffered defeat against Derby County and he guided the club to a fine 11th position finish.
The 1978 – 1979 season proved to be a debacle for Birmingham City, as they finished off the season in 21st position, suffering relegation in to the second division. The departure of Trevor Francis did not help matters one year before as he became the first million pound player, moving to Nottingham Forest.
Jim Smith guided the blues back into o the first division at the end of the 1979 – 1980 campaign as they finished it off in 3rd position to gain promotion. They crashed out of the FA Cup in the fifth round as they suffered defeat against Tottenham Hotspur.