Although the 2002-03 campaign eventually ended in anti-climax, the overall feeling for the fans at the end of the season was relief, as the club was rescued from the brink of closure by it's own Supporters' Trust.

The club was placed into administration in December after chairman John Batchelor failed to fulfil his initial promises, and the club found itself with five weeks to find an owner, or face entering liquidation. These five weeks elapsed without a new owner coming to the fore, so it was left up to the fans to fund the running of the club with donations, until the Supporters' Trust took over in March. 

Meanwhile, on the pitch the early signs were good, as City reached 2nd in the table early on, and manager Terry Dolan was rewarded for his efforts with the Manager Of The Month award for August. However, the team's form waned and by November City were lingering around mid-table, having crashed out of the Worthington Cup and the LDV Vans Trophy in the First Round. Fortunately, City then went on a four-game winning streak and looked to be in a position to challenge for promotion when the news was announced that, due to mounting financial difficulties, the club had been placed into administration. City then experienced their customary mid-season slump as they failed to win in five games over the Christmas period, and just when they appeared to have turned the corner with a 3-1 win over Swansea, two more killer blows struck the team. The club was not in a position to be able to pay the players' wages, and as a result goalkeeper Alan Fettis and striker Peter Duffield, who had already notched up 15 goals, enough to become City's top scorer for the season, departed to rivals Hull City and Boston United respectively.

The club immediately brought in Michael Ingham on loan from Sunderland as a replacement in goal, and he provided the backbone for the seven-match unbeaten run City then embarked on. By the time of the Trust's takeover on March the 27th the club were in a healthy league position, and in the Trust's first match in charge a 2-0 home victory over Southend saw the club rise into the automatic promotion places with six games remaining. Sadly, the club failed to win any of these six and finished in 10th place, just outside the playoffs. 

Although City had amassed their highest points total for 8 years, the new board felt it was time for a change and, during the close season, replaced Dolan with 27-year-old Chris Brass, who took over as player-manager with veteran striker Lee Nogan as his assistant. The club's excellent home form which saw them lose just three times in the league at Bootham Crescent, coupled with the fear that every next match could be the club's last, meant that City achieved their highest average attendance for 9 years of 4176.