The main story of the season was the sale of star strikerLomana LuaLua to Premier League side Newcastle United for £2.25m. The proceeds from the sale helped to secure the medium-term future of the club.
Steve Whitton's first full season in charge of the U's ended with a minor improvement on last season with a 17th position finish. In the cups, it was a familiar story to the preceding seasons, with a first round exit in the Football League Trophy and a second round defeat to Sheffield United in the League Cup. Colchester were again dumped out of the FA Cup by non-League opposition when Yeovil Town thrashed them 5–1 in the first round.
Season overview
After scoring 14 goals for Colchester in the previous season, the U's began to receive interest in Lomana LuaLua. After scoring a hat-trick against Queens Park Rangers in the League Cup, LuaLua made his transfer to Bobby Robson's Newcastle United for a fee of £2.25m in September. The deal proved to be a huge financial boost to the club that helped secure the medium-term future of Colchester United.