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.