Caretaker manager Iffy Onuora was unable to save Swindon from relegation to League Two in 2006. Their relegation meant that they became the first ever former Premiership team to be demoted to the lowest Football League division. Dennis Wise agreed to become the new Swindon Town manager in May 2006 following the relegation, with Gustavo Poyet joining the coaching staff. The pair left in October when it was announced that they had agreed to move to Leeds United. Adrian Williams and Barry Hunter took temporary charge until Paul Sturrock was appointed on November 7, he remains the club's first team manager.

The club has been beset by financial difficulties throughout its history, having been placed into administration on two occasions.
Swindon Town are presently attempting to gain promotion back in to the third tier of English football putting on some impressive displays during the 2006- 07 season.