Hammer is offered an out of state scholarship and is forced to leave the team and Mary Beth. Meanwhile, Antonio moves to Texas to be with Kristy, and Rico has already left the team to persue wrestling. Replacing him is new player Eugene Brown.
After becoming the manager of Michael's band, Mary Beth tries to talk to a record executive. However, she finds that he's not willing to listen to anything that a female manager has to say. Meanwhile, the team thinks that Coach Katowinski might be leaving to take another job and come up with a plan to make him stay.
Julie starts dating an older guy named Jason. He continually encourages her to do more mature things, like stay out late on school nights. Because she's still a high school student and he's not, Julie feels like she can't say no because Jason will think that she's too much of a kid. While they attend a school dance together, Jason blows off the actual dance and ends up drinking in the hallway. When he's ready to leave and wants to drive Julie home, Kristy and Mary Beth don't think it's a good idea because he's been drinking. Julie goes anyway because she's afraid to say no. She and Jason end up getting into a car accident. Luckily, neither of them are hurt badly, but Julie injures her shoulder and can't play in Deering's game.
Eugene takes up an interest in skateboarding and starts to act like it's more important than basketball. After the Coach won't cut Eugene any breaks and allow him time for both sports, Eugene thinks about focusing solely on skateboarding.
Michael meets a man at a pickup basketball game and gets not only a loan from him, but a job as well. After Julie finds out that the man is a college recruiter, they're worried that Michael may have become ineligible to play basketball in college.
Julie and Antonio both love swing dancing and decide to enter a competition together. At first, Kristy and Michael are just annoyed that they can barely spend time with either of them. However, Mary Beth plants the idea that there may be more than dancing going on between the two. Meanwhile, Silk and Eugene work on setting up pranks to catch on video, so that they can make money by sending their tape to a funniest home videos television show.
Eugene and Silk both get jobs co-managing a new dance club. They're faced with a difficult decision when they find that a classmate and a great customer is dealing dope. Meanwhile, Kristy and Mary Beth decide to buy drugs from the dealer undercover in order to win spots on the newspaper.
Silk's dad is a police officer and as part of the job, he puts criminals behind bars. Silk starts to be terrorized by a vengeful criminal named Eric who was recently released from jail and has it out for Silk. After being confronted by Eric, Silk starts to get nervous about being alone without any defense, so he starts arming himself with a gun. During another confrontation with Eric, the gun accidentally goes off, nearly hitting Mary Beth, Michael, and Eugene.
After becoming lab partners with Syd, a grote (what teens from Deering call goths), Kristy tries to befriend her and close the gap between their cliques a little. As part of Kristy's plan to get to know some of the grotes a little better, she dresses up just like one, with the white makeup, black clothing, and piercings. She also tries to get Mary Beth and Julie to realize that other social groups aren't so different, but Kristy's other friends can't seem to make the effort to get to know them. However, while dressed up like a grote, Kristy and some of Syd's friends get beaten up by a pack of guys. Meanwhile, Eugene starts dating a college student after he lies to her and says that he's also attending college. However, he gets himself into a hard situation when she starts subbing at Deering.
Michael and Silk sign up for a Big Brother program in which they will spend time with a younger boy and be his mentors. The guys get assigned to a boy named Daniel, and he and Silk instantly bond. However, Silk has to leave early and doesn't have the chance meet Daniel's mother. Michael does and she mentions to him that she's glad Daniel got the right kind of Big Brothers- white males. Michael has no idea how to handle the situation, so he tells the rest of the team and they struggle with what to do in regards to Silk.
The team travel to yet another state final. Antonio meets up with some friends of his that are in a fraternity. Kristy becomes jealous when she finds out that other girls were at a party hosted by the fraternity, so she and Mary Beth come up with a scheme in which they dress up as guys and head on over to the fraternity's next event in order to spy on Antonio. Meanwhile, Michael's temper flares on the court when he continually gets harassed by a guy in the stands.
The Deering team discover that in the playoffs they're playing against a team that's generally considered easy to beat. Being overly confident, they start to slack off on their practices and don't take the upcoming game seriously enough, causing them to lose the championship. Meanwhile, Kristy and Mary Beth meet an old friend that they used to tease and try to make it up to him.
Antonio is offered a scholarship from the University of Kentucky. However, he gets injured and decides to give up on taking the scholarship. Coach and the other team members try to convince him to overcome his injury and go to Kentucky.
Coach's 17-year-old daughter, Kate, returns from Chicago to visit. However, he doesn't know that she has a baby. She confides her secret in the girls and they offer to sit for the baby while Kate and Coach visit. Meanwhile, the guys try to sell sunglasses in order to afford a ski trip.