Havelock High pupil Liberty has gone to the local paper about what's been going on at Waterloo Road's rival school. She's claimed that Findlay has been fiddling with the school's figures and banning children who he feels are a bad influence. Her whistleblowing has led her to Waterloo Road. She wants to be enrolled as a pupil, but Michael is adamant that the books are full and she won't be admitted to the school. However, Audrey is convinced that she can make a brilliant contribution to the school. Meanwhile, Michael says that they're still going ahead with the inter-school competition despite the bad press the school has received. Both Havelock High and Waterloo Road face each other, and Gerard is furious when Michael's school starts beating them in the tournaments. Suddenly, Gerard completely flips and starts to take out his anger on Liberty. He grabs her and threatens her, saying that she has to take back the comments she made to the press. Michael and Audrey burst into the room just in time, before the situation gets even more out of hand. Gerard, under so much stress at work, decides to leave and calm down. Michael then offers Liberty a place at Waterloo Road. Then, Sian goes to see Michael's dad. She arrives at his house and he reveals that he's dying. He wants to see Michael one last time, but only if Sian promises to keep his illness a secret.
