Huddersfield ended 8th in the 1995-96 season and towards the end of the season saw the departure of the hugely nourishing strike partnership of Andy Booth and flame-haired veteran 'Rocket' Ronnie Jepson, whose goals had been crucial to Huddersfield's success in the previous 2 seasons. Booth left for the premier league Sheffield Wednesday in a club record £2.7m deal while Jepson left to 2nd Division Bury on a free transfer. Horton put the money in the prolific Bristol Rovers forward Marcus Stewart (for a club record £1.2m), Barnsley's Andy Payton (£350,000) and Blackpool defender Andy Morrison (£500,000).

Following such an outlay, a lot was hoped of the Terriers in the 1996-97 season however, despite a bright start from Stewart, Horton was unable to improve on the team's consistently poor away form that had ended the side's playoff bid the previous year. Long-term injuries to Stewart and Morrison did little to help things and, with the previously strong home form becoming increasingly patchy, the Terriers suffered at the wrong end of the table. It was perhaps the least celebrated summer signing Payton who notched a fine tally of twenty goals and helped staved off the threat of demotion as the side scrambled to 20th.

After a closed season of small amounts of activity in the transfer market, Huddersfield started the 1997-98 campaign disastrously and, after some questionable signings and tactical decisions, Horton was dismissed in September 1997 as the club were at the foot of Division One.