From 1977 onwards Knights was frequently rested up forward to reduce the risk of injuries, but still did enough great work at centre half-back to finish one vote behind Malcolm Blight in the 1978 Brownlow Medal count. He would shrug off the disappointment of finishing runner-up in the Brownlow by starring in the 1978 VFL Grand Final. After being knocked out while playing in defence, Knights was moved forward in the last quarter, where he took a series of fine marks and kicked two goals to help secure Hawthorn's fourth Premiership. During his stellar 1978 season Knights also claimed his second Simpson Medal with a dominant display for Victoria against WA in Perth.