The 1985 – 1986 first division campaign proved to be a debacle for Birmingham as they suffered relegation being condemned to a 21st position finish. The Blues also suffered real embarrassment in the FA Cup as they were knocked out of the competition by Altrincham in the third round of the cup competition.
John Bond took charge at the club during the 1986 – 1987 season and his side finished off a miserable campaign in a disappointing 19th position finish. Garry Pendrey was the next man to take charge at the club, spending two years between 1987 and 1989 at the club. He watched his side finish the 1988 – 1989 season in an unacceptable 23rd position finish, condemning the blues into o the third division for the first time in their football history.
Dave Mackay was installed as the new manager at the club in 1989 and Birmingham narrowly missed out on a place in the play offs at the end of the 1989 – 90 season.
The 1989 – 1990 Birmingham City FC football team include players like, Martin Thomas, Kevin Ashley, John Frain, Ian Atkins, Vince Overson, Trevor Matthewson, Dean Peer, Dennis Bailey, Simon Sturridge, Nigel Gleghorn and Kevin Langley.