Droylsden opened their second season in the Federation with two home victories. Bollington were beaten 4-0, whilst Parkfield Central suffered a 7-2 defeat. In October, Rusholme visited the Butchers' Arms and Droylsden gained two more points with a 5-1 win. By January 1903, Droylsden led the table, and their record up to that point read: played 12, won 8, lost 1, with 3 matches drawn: 37 goals had been scored and 11 conceded. Towards the end of January, Droylsden played Hyde St. George in what was a vital match as the Hyde club were beginning to challenge Droylsden at the top of the table. However, the Droylsden team put on a poor show and lost the game 1-2. The result brought this comment from the local press:

"Contrary to the anticipation of the Droylsden side, the Hyde St. George's were able to take a couple of points out of them in the Manchester Federation match played on the Butchers' Arms enclosure. The score, 2-1, was a fair indication of the game. Droylsden were in very poor trim. They held their opponents too cheaply and lost."

That result was the beginning of a bad run for the Market Street club, though by the end of February, Droylsden were still hanging on at the top of the table.

"By defeating Urmston Victoria on Saturday, Droylsden still continue to head the Manchester Federation table. The match, which was contested at Droylsden, was witnessed by a fair number of people. Urmston winning the toss, Godsell started on behalf of Droylsden, but the visitors, with the wind behind them, forced a corner, which availed them nothing. Nice passing among the home forwards left Hughes with an open goal, but he shot wide. Grimshaw forced a corner, but Cain headed past. The visitors got down again, Anderton saving finely. Interval: No score.

"In the second half the visitors were outclassed. Assisted by a strong breeze, the Droylsdenites found the net on five occasions and ran out winners. Result: Droylsden 5, Urmston Victoria 0. Droylsden's greatest rivals in the contest this year are Hyde St. George's, and when the final stages of the tourney have been reached there is bound to be any amount of excitement amongst supporters of both organisations as to which club will be successful in bringing home the championship trophy."

"At Rusholme Droylsden had all their work cut out to make a draw with the 'wooden spoonists' of the Manchester Federation. The weather seemed to have given the Droylsden men 'nerves' for they did not exhibit their best form, and were short of their full complement of 'first hands'. Each side scored three goals, and Droylsden have by this performance lost a point, which may be of value later."

The 'nerves', which appeared at Rusholme continued throughout the next four matches, as in March, the Market Street lads lost the return game at Hyde St. George's by 1-3. A week later Droylsden entertained Heathfield at the Butchers' Arms, where they played out a 0-0 draw in front of their frustrated supporters. In the next two matches, Droylsden lost 0-3 at Bollington, and drew 1-1 in the return match with Heathfield. Vital points had now been lost, whilst the Hyde club continued their winning ways, and as the season reached a climax, Droylsden suddenly regained their form. The Butchers' Arms boys took all six points from their last three fixtures: 5-0 against Queens Park, 1-0 against Parkfield and 3-0 against Lymm. It was all to no avail however, and once again, Droylsden had fallen at the last hurdle.

Pts

Hyde St. George's

Bollington

Droylsden

Poynton

Urmston Victoria

Parkfield Central

Heathfield

Queens Park

Lymm

Stretford

Rusholme

Manchester Talbot Res, Zion PSA, and Abbey Hey withdrew, and their results were struck out.

At the end of this season, Droylsden AFC, once again, was disbanded. No reason for the disbandment was relayed to the local press, though it was reported that when the club was abandoned they had handed over a considerable sum of money to the Droylsden Sick Nursing Association. Two seasons would pass before the club was once again re-formed.