Jim Smith took Birmingham City in to the quarter finals of the 1981 FA Cup; however the side suffered defeat against a very strong Liverpool side. His final campaign in charge at Birmingham City was the 1981 – 1982 season and his side finished doff in comfortable 16th position finish.
Ron Saunders took charge of Birmingham City in 1982 and his first season in charge saw the blues struggle in the first division as they finished it off in 17th place.
The 1983 – 1984 campaign proved to be a debacle for Birmingham City FC as they suffered relegation as they finished off the campaign in 20th position, they enjoyed a decent run in the FA cup, reaching the quarter finals, suffering a 3-1 defeat against eventual finalists, Watford.
Ron Saunders guided Birmingham straight back in to the top flight during the 1984 – 1985 season as they were in emphatic form, finishing the campaign off in second position.