This season events on the field were overshadowed by events OFF it as in December 2001 chairman Douglas Craig announced the club was for sale. If a buyer was not found by the end of January 2002 the club would offer its resignation to the FL and York City would cease to exist at the end of the 2001/02 season. Several parties showed interest in the club but the buyer was the Cheshire based owner of the B and Q Racing Team, John Batchelor. Batchelor promised a new stadium and Premiership football for York, but it was all to end in tears less than a year later.

On the pitch City got off to a better start than the previous two seasons and at the end of October were just two points off a play-off spot. But they took just 5 points from the next 30,failing to win in ten league games and by January were in their now customary spot,just one point off the bottom. A fine 2-1 win over local rivals Hull was City's first win in eleven games, but when new chairman Batchelor took over on 12th March City were still second from bottom, albeit 12 points ahead of Halifax with 3 games in hand. City won 6 of the last 11 games though to finish a creditable 14th,three places higher than the previous season. Top scorer was Michael Proctor, on loan from Sunderland, who scored 14.

In the Cups City went out in the first round of the League cup against Crewe 6-5 on pens after a 1-1 draw but the FA cup again provided some respite from the poor league season. Colchester were beaten on penalties after a replay ,then City beat Reading for the second year running .A 0-0 draw at Grimsby was followed by a replay at York which saw hundreds locked out as City brushed aside the First division opposition with ease. Premiership big-spenders Fulham were the next opponents but goals from Malbranque and Marlet ended City's hopes for another season in front of an almost full house at Bootham Crescent. Fulham chairman Mohammed Al Fayed donated their share of the gate receipts to the newly formed York City Supporters Trust as an act of goodwill.

A better season for City finally with some promising new signings particularly Jon Parkin a 19 year old from defender cum striker from Barnsley. Though events off the field were to get even worse.