In May, the board appointed Geoffrey McPherson as the club's new chairman, replacing Stuart Dryden.[1] On 30 May McPherson negotiated a new three-year new contract for Clough and Taylor after they won the European Cup Final. The club reinforced the squad, with forward Ian Wallace signing from Coventry City for £1.25 million [2] and Swiss player Raimondo Ponte signing from Grasshopper Club Zürich, to boost an ageing midfield.[3] On 15 October, the club sold Garry Birtles to Manchester United for £1.25 million,[4] prompting the arrival of forward Peter Ward from Brighton & Hove Albion.[5] In spite of these new arrivals, during the season the team dropped to mid-table, and by spring the midfield was weakened after the departures of Martin O'Neill, Raimondo Ponte, Ian Bowyer and defender Larry Lloyd. Forward Trevor Francis suffered an injury that sidelined him until December. Forest finished the season in 7th place, missing out on qualification for the following season's UEFA Cup after a draw 1–1 with Coventry City on the final day, with Southampton taking the European berth on goal difference.
Forest's defence of the European Cup ended in the first round following a 2–0 aggregate defeat to Bulgarian side CSKA Sofia. In the League Cup the team was eliminated in the fourth round by Watford. The club lost the European Super Cup on away goals to Valencia CF. In February, the team lost the Intercontinental Cup 1–0 to Nacional in Tokyo. Finally, in the FA Cup the team was knocked out at the quarter-final stage following a replay with Ipswich Town. Also, after seven seasons Scottish trainer Jimmy Gordon announced his retirement.
Squad
Note: Flags indicate national team as defined under FIFA eligibility rules. Players may hold more than one non-FIFA nationality.
^The statistics for the following players are for their time during 1980–81 season playing for Nottingham Forest. Any stats from a different club during 1979–80 are not included. Includes all competitive matches.
^Smales, Ken (1991). Forest – The First 125 Years. Nottingham: Temple Printing. ISBN978-1870010092.
^Attaway, Pete (2010). Nottingham Forest: Brian Clough and His Legacy - A Complete Record 1975 - 2010. Southend-on-Sea: Desert Island Book. ISBN978-1905328833.