Charlie Pinker's team achieved some good performances, but alas the financial gloom depended, and supporters were asked to hand in their season tickets half-way through the season - a ground ticket cost 7/6d (37½p). The previous management then resumed control and engaged a new player-manager, Ted Davis from first division Blackburn Rovers, who had also kept goal for Huddersfield Town and Bristol City. Ted, who had a likeable personality, was a successful manager with a talent for discovering players for transfer and thereby solving the financial problems which were so acute at the time, with unemployment and the looming of the 1926 General Strike. Ted also signed Bristol professionals, Bill Pocock, Sandy Torrance, Joe Walters and Bill Compton, all experienced Second Division players. To aid funds, Blackburn Rovers came on three occasions with a bevy of internationals. Blackburn's first visit to Lambridge drew a large crowd to see the star-studded side, which included Syd Puddefoot (Falkirk and West Ham), Jackie Bruton and Jock Hutton, a giant Scottish international back. City won this friendly encounter, Blackburn apparently overlooking a fine display by three City youngsters who eventually were transferred to First and Second Division clubs. City meanwhile, were participating in division two of the London Combination, together with their Southern League commitments. City won promotion in this league, but were refused admission to Division One as only reserve teams were included in it, such as Arsenal and Tottenham. Teams visiting Lambridge in the Combination included reserves of Portsmouth, Southampton, Reading, Coventry, Watford, Brighton and Peterborough, who were then a non-league side.

In the Southern League City also began to taste success as they won the Western Section by 2 points from Bristol Rovers Reserves in 1929-30, losing the Championship play-off 3-2 to Aldershot. During this period, City suffered defeat in a series of FA Cup competitions at the hands of Radstock, Kingswood, Hanham and Swindon Victoria as well as against sterner opposition, Wigan (1922-23) 4-1, London Calendonians (1927-28) 1-0 and Coventry (1929-30) 7-1, all away. At Wigan, City officials and players were presented with souvenir clogs as worn by the mill girls of that era.

Ted Davis had now finished his career as a player and proceeded to build up a successful side which immediately made an impact on the FA Cup competition. The chief signature was that of Willy Cowan, a Scottish inside-forward from Newcastle. Cowan had appeared for Scotland in the first Wembley International in 1925 and also for Newcastle in the Cup Final. In 1931-32 City had a terrific run in the qualifying rounds and then a 8-0 defeat of Nunhead, a prominent London amateur team, in the first round proper. The next draw was against Crystal Palace at home. City decided on increased prices of admission from 1/- to 1/6d and caused a public outcry in consequence, but 7000 turned up to see Palace lead at half-time 1-0 by a goal from star centre Peter Simpson (later with West Ham). The crowd began to drift away in the remaining minutes, a large number failing to see the dramatic City victory by a twice taken penalty and last minute goal. The final scenes were incredible, the referee having to clear the pitch on two occasions. One Crystal Palace supporter threw his wreath, 'In Memory of Bath City', into the river and the supporters club tea hut was also pushed over. The match was also filmed and projected at the Bath Picturedrome which was situated in Stall Street. The next tie, City's first appearance in the third round, saw them lose 2-0 at Brentford. The proceeds of Cup rounds and previous transfers of Gilbert Alsop (Coalpit Heath) and George Plummer (Coventry City), now enabled the club to consider the purchase of their own ground.