Beamish, RedFM and the Evening Echo remained as the sponsors, and as usual, the kit was first seen without league patches (above, far left) before they were added (above left). The new away strip was in the same design but in black and without the contrasting-coloured sleeve that the home had (right). No long-sleeved shirts were worn by City during this season, goalkeepers excepted. The new kits were launched in conjunction with a press conference announcing the signings of the returning George O'Callaghan and the league's top scorer in 2007, Dave Mooney, who had followed new manager Alan Mathews from Longford Town, with Pat Sullivan, Dave Mulcahy and another old boy, Danny Murphy (who had had a spell with Motherwell) all signing as well.
A spate of early draws left City having to play catch-up and Mooney took a while to find his scoring touch, but once he did it was the catalyst for a revival and with the team playing some very good exciting football they began to move up the table but Dublin sides Bohemians and St Patrick's Athletic had set a very fast pace. By the mid-season break, City were up to fourth place, seven points off the lead, though in early July O'Callaghan, who was unhappy at having to play on the right-hand side of
midfield, left the club by mutual consent. It was not the first time and it would not be the last. A week later, a thrilling comeback from a 2-0 deficit at home to Finnish side FC Haka earned City a draw in the first qualifying round of the UEFA Cup. As usual, additional sponsors were jettisoned (left), but for once City's regular shorts seemed to have bit enough numbers to prevent a change there. A 4-0 defeat in Valkeakoski meant an exit, however, and as of 2012 the club have yet to return to European competition.
That would be the least of anybody's worries, though, as things were unravelling off the pitch. Pat Kenny, the CEO appointed by Arkaga, noticed that finances were in a poor state, which led to examinership as Arkaga, who were playing the role of the injured party, announced that no further funding would be forthcoming. The remaining staff took a pay-cut in a bid to aid the club's survival chances, and while league results worsened, amazingly the Setanta Sports Cup final was reached, with Belfast side Glentoran the opponents in the final at Turner's Cross. Prior to that game, there was another boost as local businessman Tom Coughlan won approval from the examiner,
Kieran McCarthy, to take over the club, seemingly ensuring its future. The feelgood factor continued into the final at a packed cross, as goals from Dan Murray and Liam Kearney (who had returned in 2007) secured a 2-1 win after falling behind early on. With big plans from Coughlan, including a new stadium and training ground, the prospects were bright again, though just before Christmas manager Mathews was abruptly saked, despite Coughlan having expressed confidence in him and a new contract being all but agreed. It was only the tip of the iceberg, as 2009 would prove.
