from playing after steering York to a seventh-place in 1982–83, in which he made 36 appearances and scored 4 goals. He signed Sheffield United's John MacPhail on a free transfer as a replacement for himself. In his second season as York manager, 1983–84, he signed another former teammate, energetic midfielder Sean Haslegrave. Smith was named as the division's Manager of the Month for March 1984 after York won five and drew one of their six league matches. He guided York to the Fourth Division title and promotion into the Third Division, with Walwyn scoring 25 goals and earning a place in the PFA Team of the Year alongside strike partner John Byrne, who scored 27 goals. York finished with 101 points, 16 points ahead of runners-up Doncaster Rovers. Early in 1984–85 York were beaten by Queens Park Rangers (QPR) in the League Cup, but Byrne impressed QPR manager Alan Mullery enough to earn a £100,000 move to Loftus Road. Smith spent half of this sum (a club record) on Aldershot forward Dale Banton, who went on to score 49 goals in 138 appearances for the club. He also released winger Brian Pollard, but found that the man he signed in his place, Gary Nicholson, was not able to replicate Pollard's form. York started the season well and another of his signings, Keith Houchen (£15,000), scored a hat-trick in a 7–1 win over Gillingham in November 1984. On 26 January 1985, he guided York to victory over Arsenal in the FA Cup fourth round. In the next round York came from behind to draw 1–1 at home with Liverpool, before losing 7–0 away at Anfield. York again drew Liverpool in the FA Cup fifth round in 1985–86, and took the lead through Gary Ford only to concede a stoppage time equaliser. Tony Canham scored at Anfield and York had a second goal disallowed before York succumbed to a 3–1 defeat in extra time. York lost only three home league matches all season, but missed out on promotion after finishing seventh. In the summer of 1986 he sold MacPhail to Bristol City for £15,000, whilst many of the veteran players he signed when he first came to the club were coming to the end of their careers. The 1986–87 season was disappointing for York as they were knocked out of the FA Cup by non-League team Caernarfon Town and ended the season