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 failed to reach the same heights. Wins in the St George Stakes and the Australian Cup (by four lengths) were interspersed with defeats in the Orr Stakes and the Victoria Gold Cup, where he was defeated as a long-odds-on favourite by the hitherto unheralded Mr Trickster. In Sydney, Northerly was also odds-on favourite in his three starts, but failed to win. In the Ranvet Stakes, he was run down by Republic Lass; in the Manion Cup, he was unplaced; in The BMW Stakes, Freemason set a course-record pace, and Northerly was unable to run him down, as the two horses