Yeats immediately began strengthening Tranmeres' Liverpool connections - signing in Ian St John, Bobby Graham, Willie Stevenson and Tommy Lawrence, as well as the legendary Bill Shankly in a "consultancy" role. This club witnessed one of the most memorable Rovers scores of all time when, on 2 October 1973, in a League Cup match, Tranmere defeated First Division club Arsenal 1-0 thanks to an Eddie Loyden goal, and later FA Chief Executive Mark Palios shackling Arsenals Alan Ball. Tranmere Rovers are the only club to have a one hudred percent record at Arsenals now torn down home of Highbury.

Such greatness couldn't last though, and Tranmere rolled back into the Fourth Division in 1975, despite bringing stars through such as Steve Coppell. Yeats was dismissed and replaced by his coach. The next decade was among the bleakest times in Tranmere's history, with the club usually in the lower reaches of the fourth division and beset by heavy financial difficulties, almost going out of business on few occasions. A takeover by local businessman Peter Johnson proved to be a turning point in Tranmere's timeline, the club under his ownership enjoying by far the most successful period in its history, in which manager Johnny King took the team from the low ends of the fourth division to the brink of English football's top league.