With their forthcoming participation in the UEFA Cup the Hammers bolstered their squad. New additions were full-backs John Pantsil and George McCartney, goalkeeper Robert Green and forward Carlton Cole, and midfielder Lee Bowyer returned to the club. After the opening day 3–1 win against Charlton the side went on a dismal run of 11 games without a victory. Included in that run was a 2–1 defeat in the League Cup to Third Division Chesterfield, while in Europe the Hammers were beaten home and away by Palermo.

In September the Hammers fans were delighted and shocked to learn that West Ham had purchased two Argentinian international players. Securing midfielder Javier Mascherano and forward Carlos Tevez was the biggest transfer coup in the club’s history. The signing of Tevez, however, was to lead to controversy and repercussions that would haunt the club for many years. There were three successive home wins but away from home the team struggled to score. In November the board of West Ham accepted an £85 million takeover by an Icelandic consortium headed by Eggert Magnusson. Following a 4–0 defeat at Bolton Wanderers in December manager Alan Pardew was sacked and in his place former player Alan Curbishley was appointed. He brought with him former goalkeeper Mervyn Day as assistant manager and days later they celebrated a 1–0 home win against Manchester United.

Two home defeats at Christmas led up to a New Year’s Day massacre at Reading as the home side won 6–0. To bolster the defence full-back Lucas Neill and central defender Matthew Upson were purchased. There was a 3–0 FA Cup win against Brighton but the next round brought a 1–0 home defeat to Watford. The team hit rock bottom in February after losing 4–0 at relegation rivals Charlton. It seemed only a miraculous turnaround would save West Ham from relegation. In March goals from Zamora and Tevez gave survival hopes a major boost with victories against Blackburn and Middlesbrough. Then, following on from a magnificent 1–0 win at Arsenal, there was a downturn with defeats at Sheffield United and at home to Chelsea. In April a Premier League Independent Commission fined the club £5.5 million in respect of the signing of Carlos Tevez. The club were told they broke rule U18, which relates to third-party influence. A resounding 3–0 win at Wigan gave the Hammers hope and a week later, inspired by two goals from Tevez, Bolton Wanderers were beaten 3–1. The Hammers were now out of the bottom three but to escape relegation they needed to win at Old Trafford against Manchester United on the final day of the season. On a tense and emotional day the Hammers won 1–0 courtesy of a goal from Carlos Tevez, and the great escape was achieved.