Pre-season Following the player sales in the previous season, Luton manager Mick Harford needed to practically rebuild his squad from scratch. A Football League-enforced transfer embargo that was in place until 48 hours before their first game of the season handicapped Harford further. Once the embargo was lifted on 8 August, the club signed nine players: former player
Kevin Nicholls returned from a spell at
Preston North End to captain the team;
Claude Gnakpa joined from
Peterborough United;
Asa Hall signed from
Birmingham City;
George Pilkington arrived from Port Vale, and many others were signed including
Michael Spillane and
Chris Martin, both on season-long loans from
Norwich City. Meanwhile, manager Mick Harford continued to try to regenerate the squad – Irish winger
Garreth O'Connor was drafted in from free agency, as was former
Coventry City forward
Wayne Andrews. A spate of injuries did not help matters – talismanic
captain Nicholls had not played since August, forward
Sam Parkin was struggling with a recurring ankle injury, and defender Pilkington was out after becoming injured in early September. Harford introduced several younger players into the squad, including 16-year-old left-back
Jake Howells from the youth team, 19-year-old
Harry Worley on loan from
Leicester City and 20-year-old striker
Tom Craddock on loan from
Middlesbrough. Craddock made a big impact in his second game – scoring two goals in a 2–2 draw at
Grimsby Town. Craddock earned and scored a penalty after Grimsby had taken an early lead, and then, deep into injury time, crashed the ball into the far corner from long range to secure a vital point for Luton. Luton Town history was made in this game as striker
Jordan Patrick pulled on the number 29 shirt to become the club's youngest ever player – at 16 years and 7 days, Patrick came off the bench to set up Craddock's equaliser. Craddock scored again in a 2–1 win against
Bury to quickly establish himself in the team. Parkin, one of the club's highest earners, returned from injury during this game, but failed to score. He was sent out on loan to
Leyton Orient days later, with a view to a permanent deal. Three days later, a Tuesday night game against
AFC Bournemouth at
Kenilworth Road was abandoned after only eight minutes due to bad weather.
November Luton's form was interrupted – a 3–0 annihilation followed that Saturday at
Shrewsbury Town, putting a dent into Luton's charge for safety. A win in the Football League Trophy, against
League One club
Walsall, was the exception rather than the rule. Ahead of the next game, at home against
Dagenham & Redbridge, Luton were boosted by the news that Craddock had extended his loan from Middlesbrough by a month. However, when Craddock injured his groin only days later, Luton were forced to bring in another striker – former
Queens Park Rangers player
Kevin Gallen was signed on loan for a month from
MK Dons. Results did not improve, with consecutive losses to
Rochdale and Brentford. An exit from the FA Cup followed, as
Southend comfortably beat Luton 3–1 at
Roots Hall.
December December saw a revival in fortunes, as the
Hatters went the entire month unbeaten. After a thrilling 3–3 draw at Kenilworth Road in the rescheduled game against Bournemouth, Luton beat
Barnet 3–1. A 0–0 draw at top-of-the-table
Wycombe Wanderers followed a week later, before Luton beat Colchester United in the Football League Trophy to earn a place in the Southern Area Final against Brighton & Hove Albion. Craddock extended his loan from Middlesbrough by another month soon after. Luton's unbeaten run continued on Boxing Day;
Ian Roper's goal six minutes into injury time sealing a point at
Chesterfield. Two days later came a home win against
Lincoln City, Roper scoring again after Martin had put Luton 2–0 ahead – the match finished 3–2. Luton were now only one point away from cancelling out their 30-point deduction.
January Winger
Ian Henderson, available as a free agent, signed on New Year's Day and Gallen's loan was also extended. To make room on the wage bill, O'Connor and
Kevin Watson both left after short careers as Luton players. The club then had a bad run of results, including a 5–1 defeat at Darlington. Before the Darlington game, Luton signed Colchester United forward
Akanni-Sunday Wasiu on loan for a month, while extending goalkeeper
Conrad Logan's stay for a further month and signing Gallen on a permanent deal. Andrews was released soon after. In the first leg of the Football League Trophy Southern Area Final on 20 January, Luton travelled to Brighton & Hove Albion and battled to a 0–0 draw, giving them a slight advantage for the second leg at Kenilworth Road. A controversial 3–3 draw with Bradford City saw both teams' managers, Mick Harford and
Stuart McCall, and Luton captain Nicholls all set dates for FA hearings following a bizarre refereeing performance from Trevor Kettle. Craddock signed an £80,000 permanent deal on 27 January, with
Drew Talbot leaving for Chesterfield on loan to make room on the wage budget. Luton's poor run of league form continued.
February A series of postponements due to adverse weather meant the club did not play for another two weeks and, when they did, they lost 2–1 to Dagenham & Redbridge. 17 February saw Brighton & Hove Albion return for the second leg of the Football League Trophy Southern Area Final. Luton took the lead after 59 seconds through Craddock, following a defensive mix-up. Brighton equalised with a
Nicky Forster goal before
David Livermore was sent off for a dangerous tackle on Spillane. Neither club made a breakthrough in the remainder of the match, which went to a
penalty shoot-out. Luton's on-loan goalkeeper from
Derby County,
Lewis Price, saved from
Jason Jarrett and
Chris Birchall to take Luton into the final against
Scunthorpe United on 5 April at
Wembley Stadium. This appeared to have given Luton something of a confidence boost as they then went four games unbeaten in the league. Craddock scored again against Shrewsbury Town as Luton won 3–1, and carried on his scoring form over the next month.
March The next major game was on 17 March against relegation rivals Grimsby Town. Grimsby boss
Mike Newell, formerly manager of Luton Town, was suing the club for unfair dismissal. Newell received an angry reception, which turned to jeers when Hall scored a last minute winner to give Luton the three points.
Macclesfield Town then visited Kenilworth Road, and a Craddock penalty was enough to secure a 1–0 victory for Luton – the first time the club had secured two straight wins all season. Meanwhile, the club announced they had sold out their allocated 30,000 tickets for the Football League Trophy final almost immediately, and were given another 8,500 which went just as fast – setting a record for the most fans at Wembley Stadium from one club. However, Luton were told they would not be given any more due to "segregation issues". As a result, the final saw 40,000 Wembley seats empty. 26 March, loan deadline day, saw Luton bring in experienced midfielder David Livermore from Brighton & Hove Albion on a month's loan. Meanwhile, young striker
Ryan Charles moved to
Kettering Town on loan, also for a month. Two days later the
Hatters travelled to
Morecambe, unbeaten in twelve games. Goals from Martin and Gallen saw Luton beat Morecambe 2–1 and, in doing so, managed three straight wins for the first time since the 2004–05 League One winning season. Luton were now only eight points behind
Chester City and with a game in hand. The match that Tuesday against
Rotherham United, Luton's game in hand, could not have been more vital, but the Hatters ended up being defeated 4–2 and suffered a severe blow to their hopes of escaping relegation. The FA hearings from the Bradford City game in January rolled around for Nicholls, Mick Harford and the club on 23 March – Harford was fined a total of £1,000, the club £2,000, and Nicholls £1,000. Nicholls was also handed a five-match ban to begin on 7 April – however, the club lodged an appeal against the ban on 31 March, delaying its effect until after the appeal was heard.
April April began with the news that the club had won their case against former manager Mike Newell. Newell claimed that in his contract he had been entitled to 10% of any profit on players sold. However, his claim for £400,000 in unpaid transfer money was not upheld by a
Football League panel on 31 March. staff celebrate winning the
Football League Trophy. 5 April finally came, and Luton faced Scunthorpe United at Wembley Stadium in the Football League Trophy final as 40,000 Luton supporters converged on Wembley, dwarfing Scunthorpe's support of 13,000.
Brian Mawhinney, Chairman of the Football League, was roundly booed by the Luton support before the game, in protest at the huge point deductions imposed at the start of the season. When the game got going, however, it was Scunthorpe who drew first blood in a pulsating match.
Gary Hooper put Scunthorpe ahead early on with a low shot past
Dean Brill. Craddock set up Martin with a superb cross a few minutes later, and Martin chested the ball down to shoot into the far corner to make it 1–1. In the second half, Craddock scored a half-volley from the edge of the box to make it 2–1, but
Grant McCann forced extra time with a spectacular strike with only minutes left. Craddock was substituted and replaced by French defender Gnakpa, played in an unusually forward role by Mick Harford – it was a gamble which paid off, as Gnakpa ran onto a long ball from
Keith Keane and got a touch that carried the ball over
Joe Murphy and into the net, sending the supporters wild. Luton clung on, with man-of-the-match captain Nicholls at the centre of the game, and held on to win the match 3–2 and bring the Football League Trophy to
Luton for the first time. Only eight days later, Luton lost their League status – Lincoln City dealt another blow, as Luton were held to a 0–0 draw, and the final nail in the coffin came two days later as, on 13 April 2009, Luton Town were finally relegated from The Football League after a spell of 89 years. Chesterfield held Luton to a draw and, coupled with former Luton manager Mike Newell's Grimsby Town side winning, this meant the club's survival in the league became mathematically impossible to achieve. Relegation opened the question of whether Luton would be allowed to enter the Football League Trophy during the 2009–10 season. Luton soon submitted an application to the Football League, asking for special dispensation to defend their title. A
Rossi Jarvis goal saved a point at Barnet on 18 April. Nicholls was sent off late on for collecting two yellow cards, and Brill saved a penalty from former Hatter
Paul Furlong. Wycombe Wanderers then came to Kenilworth Road, but despite Luton forcing pressure on the promotion contenders, Wycombe managed a goal on the break following an error by
Sol Davis and Luton failed to find an equaliser. Luton's last home game in the Football League was a 1–1 draw with promotion chasers Rochdale, with Craddock scoring a penalty before
Adam Rundle rescued a point for the visitors. 27 April saw the appeal against the Nicholls ban heard at the FA, and the decision was upheld, meaning that Nicholls would miss the match against Brentford on 2 May, as well as the first four games of the
2009–10 season. Two days later, long-serving club secretary Cherry Newbury, an employee since 1978, finally left by mutual consent after a period of suspension on full pay starting in January. Newbury had been secretary since 1994, and was implicated as the employee who drew The Football Association's attention to former directors paying agents through the club's holding company.
May and June Luton Town bowed out of the Football League after 89 years with a 2–0 defeat at champions Brentford. The first signing of the summer for Luton's time in non-League football was announced on 26 May, as lifelong Luton Town supporter
Andy Burgess signed a two-year contract, joining from
Rushden & Diamonds on a free transfer. The next day saw five players released – Parkin,
Dean Morgan,
Paul McVeigh, Davis and Brill all left as their contracts had ended.
Adam Newton signed a two-year contract on 28 May following his release from Brentford, as regeneration of the squad continued. Gallen signed a new one-year deal the same day. Young
defender Howells signed his first professional deal on 2 June. Three days later,
Liam Hatch arrived on loan from Peterborough United for the 2009–10 season. Central defender
Alan White rejoined Luton on 8 June, nine years after leaving in 2000. On 15 June, the request to defend the Football League Trophy title was turned down. Experienced goalkeeper
Mark Tyler signed a two-year deal two years later. ==Match results==