Northerly dueled over the final 800 metres. Nonetheless, Northerly was a decisive winner of the Horse of the Year Award. In August 2003 swelling was found in his off-foreleg. This revealed a torn tendon, and with it, Northerly's career seemed over. Attempting to buck the odds, Northerly returned to the track in August 2004. Months of speculation ended when he galloped and then trialled successfully. A crowd of 30,000 descended on Belmont racecourse in Perth to see his return. Carrying 64.5 kilograms, Northerly was fourth most of the way and got to the lead in sight of the winning post, only
Northerly to be swamped on the line. After he turned in substandard performances in the Underwood and Turnbull Stakes (both of which he had won in previous campaigns), Fred Kersley retired him. Legendary racing writer Les Carlyon wrote of Northerly: "He fools you every time he races. He has the body language of a loser and a heart as big as the Nullarbor. He invariably looks to be struggling, a shambles of a horse blundering around on memory while his jockey pumps and blusters. Then he gets going. One instant Northerly looks beaten, the next he looks unbeatable. The closer he