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Lawn Trouble

My lawn is on its last legs. During the winter it sprouts lush (looking!) growth in a large swaythe and then when the warmer weather comes, it dies in the same place. I lifted a square to see if I could find out what's going on and this is what I found.  There is obvious compaction of the clay soil but what is the grey matter?  I suspect it is the mycelium of the yellow staining mushrooms that grow in the lawn. 
Is it beyond salvation?
Enjoy yourself, it's later than you think...

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  • Sorry, I put this in the wrong category but can't work out how to edit the category or delete this!
    I have now reposted in problem solving.
    Enjoy yourself, it's later than you think...
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