Smith lost Morrell and Trundle on free transfers, and replaced them with Chris Armstrong and Chris Llewellyn. The club's financial problems meant that players went unpaid at the start of 2003–04, although they remained in the play-off places in December 2003. However, a hairline fracture to Shaun Pejic left Smith short of defenders and the promotion challenge ebbed away to a mid-table finish. Wrexham retained the FAW Premier Cup though with a 4–1 victory over Rhyl. However, Smith made himself unpopular with supporters after refusing to endorse their campaign to oust controversial chairman Alex Hamilton.