The sale of star midfielder Joey Beauchamp to West Ham for a club record £1 million allowed Smith money to spend in the transfer market, and he spent £100,000 each on Norwich City midfielder David Smith and Sunderland striker David Rush. Oxford formed a strong promotion push in 1994–95, but were knocked out of the FA Cup in the first round by non-League Marlow. In February 1995, he spent £60,000 on Hartlepool United's Phil Gilchrist, who would form a highly effective centre-back partnership with Elliott. Oxford finished the season in seventh place, six points outside the play-offs. In November 1995, Smith re-signed Beauchamp for £300,000, who continued his excellent form after returning to his native Oxfordshire. The next month he brought in striker Martin Aldridge on a free transfer. The club were 14th in January 1996, but lost only once in their last 17 matches of 1995–96 in a tremendous second half of the season that saw them climb 12 places to win promotion as runners-up. At the end of the season, Smith became a director of the club.