In April 1974, United went down for the first time since 1937. They returned as Second Division champions a year later. In 1975/76, Docherty took United to the FA Cup Final, but they were beaten by Southampton. The following season he returned, this time beating Liverpool 2-1. It was Docherty's last match. He lost his job on 3rd June, 1977 over his affair with the club physiotherapist's wife.

In his managerial career, his clubs included Chelsea, QPR (three times), Aston Villa, Rotherham, FC Porto, Derby County, Preston and Wolves. He had a spell in Australia and at non-League Atrincham before his retirement.