The 1985âÂÂ86 Football League season was Birmingham City Football Club's 83rd in the Football League and their 50th in the First Division, to which they were promoted in 1984âÂÂ85. They finished in 21st position in the 22-team division, so were relegated back to the Second Division after only one season. They entered the 1985âÂÂ86 FA Cup in the third round proper and lost in that round, at home to non-league club Altrincham, a result that precipitated the resignation of Ron Saunders as manager. They were eliminated from the League Cup by Southampton in a third-round replay. John Bond succeeded Saunders as manager.
The top scorer was Andy Kennedy with just nine goals, of which seven were scored in league competition.
With the team already in the relegation positions, chairman Keith Coombs resigned in December 1985, selling his 70% shareholding to the former chairman of Walsall F.C., Ken Wheldon, who took over as chairman. The club's serious financial situation, not helped by low attendances, led to the departure of several senior administrative staff.