In 1996 Manly made another Grand Final appearance and beat St George Dragons to win the title that had eluded them the season before. Rugby League in Australia was split in two leagues in 1997, the ARL and Super League, and Manly were one of the leading teams in the ARL competition. For the third consecutive year Manly reached the Grand Final, however lapses in their intensity which appeared during the season returned in the premiership decider against the Mal Reilly coached Newcastle Knights and the Sea Eagles were beaten on the full-time siren by a Knights try.