The 1997–98 season was Birmingham City Football Club's 95th in the Football League. They finished in seventh position in the 24-team Division One, the second tier of the English football league system, missing out on the playoff places on goals scored. Needing to win their last game, at home to Charlton Athletic, and hope that Sheffield United failed to win theirs, Birmingham "were repeatedly foiled in this emotionally-charged game by a brilliant display from Charlton's goalkeeper" Saša Ilić; the game finished goalless. They entered the 1997–98 FA Cup at the third round, losing to Leeds United in the fifth, and entered the League Cup in the first round and lost to Arsenal in the third.
In August 1997, co-owner David Gold took up the post of chairman after Jack Wiseman's retirement.