On 1 February 2012, Grayson was dismissed by Leeds United due to lack of results he was getting. A Club Statement said: "We have 18 games to go this season and are still within touching distance of the Play-Offs, but felt with the transfer window now closed we needed to make the change at this time in the belief that a new managerial team will be able to get more out of the existing squad of players and make the difference". His last result was a 4–1 defeat to Birmingham City on 31 January 2012.