The following season, Luton became the first-ever champions of the newly named League One, winning 98 points and gaining promotion to the Championship. Newell guided Luton to further success in the 2005–06 season, which saw Luton finish 10th in the Championship – their highest finish since they relegated from the top flight in 1992. Luton also became one of only two clubs to defeat runaway champions Reading. Newell was linked with jobs at several larger clubs, such as Leicester City, but remained at Luton and later signed a four-year contract.