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The 1996–97 season was a major struggle for Oldham which resulted in Graeme Sharp resigning in February. Sharp was succeeded by Neil Warnock, who had previously achieved promotion success with Scarborough, Notts County (twice), Huddersfield Town and Plymouth Argyle but was unable to save Oldham from relegation to the third tier for the first time in 23 years which was confirmed three months later following Bradford City's win against Charlton Athletic.
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