Matt Gillies then club record incoming fee of £80,000 and the unrest over pay saw Leicester slump to 18th that season in the league. The signing of Derek Dougan for £21,000 from Peterborough United and Jackie Sinclair from Dunfermline for £25,000 the following summer though saw the club rejuvenated and again become a strong force in the First Division. However, having just celebrated victory in the 1966 World Cup and having cemented a reputation as being one of the world's foremost goalkeepers, Gordon Banks was under pressure from upcoming youth star Peter Shilton. Shilton wanted first team football and realised that with
Leicester City F.C. succeeded Jimmy Bloomfield in 1977. City were relegated at the end of the 1977–78 season and McLintock resigned. Jock Wallace resumed the tradition of successful Scottish managers (after Peter Hodge and Matt Gillies) by steering Leicester to the Division Two championship in 1980. Unfortunately, Wallace was unable to keep Leicester in Division One, but they reached the FA Cup semi-final in 1982. Under Wallace, one of City's most famous home-grown players, Gary Lineker, emerged into the first team squad. Leicester's next manager was Gordon Milne, who achieved promotion in 1983. Lineker helped Leicester maintain their place in the First Division