The transfer market was going crazy with certain clubs splashing out hitherto unknown sums on players. Most notably Steve Daley and Andy Gray went for figures approaching £1.5 million.
United did not have that kind of cash so McGarry continued his wheeling and dealing in the transfer market. Having lost Irving Nattrass to freedom of contract he used the money to fund the purchases of Ian Davies, Stuart Boam and Billy Rafferty
Bill McGarry was one of a number of managers who expressed concern over the profligacy of some clubs and warned that some would soon be in serious financial trouble
But with United struggling to score goals he declared "I'll put the club into hock if it will take us up" ;but added that the club "aren't wealthy enough to be reckless"
A couple of days later (possibly following a word in his ear) the story had changed and McGarry stated he would have to sell before he bought again. The lack of cash was blamed on the massive cost of ground developments and the loss of income caused by the severity of the previous winter.
Within the month the situation looked even more bleak as McGarry informed the press that he envisaged that the current 36 man professional staff would be reduced to 22 (not including youngsters) by 1980/81.
He stated that it was no longer viable for the club to maintain such a large squad and that it was a situation that would be repeated across the nation.
The problem was that McGarry made poor use of the limited funds he did have available. The Magpies struggled for goals all season and Bill splashed out big money on Billy Rafferty and Bobby Shinton but neither made an impact.
He was also looking for a midfield ball winner but despite being linked with a number of players including Plymouth's Gary Megson he never got one.
It was his failures in the transfer market which would undermine team performance and eventually lead to his sacking at the start of the following campaign.
The season had all started so well and McGarry appeared to be really relishing the job. The enthusiasm of the fans seemed to be rubbing off on McGarry as New Year beckoned. "All I want to do is get enjoyment out of the job, to get enjoyment out of winning" "Perhaps it has something to do with this area where the fans gain so much pleasure. You can't help wanting to share it.".
By Christmas McGarry was proclaiming that "the North East is on the threshold of something big", enthusing over his managerial freedom (a rare commodity on Tyneside over the years) and extolling the attitude of the players
"There is no interference. I have been allowed to manage and get on with my own job. There is a tremendous all-for one and one-for-all spirit at Newcastle now. We are now one big happy family".
But the bouquets were barbed a couple of days later when Terry Hibbitt received a heavy fine after he made a two fingered gesture towards the bench when substituted against Chester. "That will be an expensive gesture as far as he's concerned.
As the results deteriorated McGarry started to question the attitude of the players; "the trouble is they have started to believe their own publicity. I think some of the players got to the stage where they didn't bother to look at the team sheet. Well it wont do any harm to ginger up a few of them.
As the slump continued McGarry blasted the players in the press and called for them to show the character that he had previously said they had. With the odd notable exception they didn't.
McGarry had lost his coach Peter Morris and devised a bizarre job-share for his new coaches. Both Iam McFaul and Dave Woodfield (who had worked with McGarry in Saudi Arabia and joined in the summer) were to alternate on a monthly basis. In the end McFaul impressed McGarry to such an extent that Woodfield was left looking after the reserves.
McFaul was considered for the Northern Ireland managers job which was being advertised as a part-time position but he turned it down on the basis that he thought it needed a full-timer. Instead he settled himself with the proceeds from his testimonial year.
McGarry was less enamoured with referees who kept booking his players. "Referees are throwing yellow cards around like confetti...it will prove the ruination of the game". Later he criticised his own players for the number of bookings they were picking up for dissent