Jim Smith was retained as manager for the following season, and it started positively for Oxford, with 14 wins and 8 draws from the opening 25 games. A run of eleven league games without a win followed, and saw United drop to second, where they remained until the end of the season. On Boxing Day 2006, a crowd of 11,065 watched United draw 0–0 with Woking at the Kassam Stadium, the largest-ever attendance for a Conference match (excluding play-offs). Oxford qualified for the play-offs by finishing second, but lost on penalties in the semi-final to Exeter City.