Cardiff started the following season with a 2–2 draw with Oldham Athletic with Dwyer scoring his side's equalising goal. Morgan made several signings, including brothers Gary and Dave Bennett and steered the club to ninth place before he was relieved of his role and moved into an administrative position. Dwyer described the move as "one of the most baffling decisions I ever came across". The club endured a disastrous run of form under Morgan's replacement, Graham Williams, failing to win a game for more than three months between December 1981 and March 1982. Williams and Morgan were both sacked in March with the club in the relegation zone and were replaced by Len Ashurst. In his first game as a manager, Cardiff won 5–4 over Cambridge United. Dwyer played his last game of the season on 27 February in a 2–0 defeat to Sheffield Wednesday before succumbing to a knee injury, caused by arthritis brought on by an operation on his cartilage earlier in his career, that ended his campaign. He finished the season having made 28 appearances in all competitions, the lowest tally of his career. In his absence, Cardiff were relegated to the Third Division after losing 3–2 to Luton Town in the final match of the season. The club also suffered defeat in the final of the Welsh Cup, losing 2–1 to local rivals Swansea City.