They competed in the NRL's 2006 Telstra Premiership and finished the regular season 4th (out of 15), reaching the semi-finals only to be knocked out by eventual premiers, the Brisbane Broncos.
Coincidentally, this news also dominated prior to their round one meeting in Newcastle, which the Knights won 25-6 (exacting revenge following Parramatta's 50–0 win last year).
The win over the Broncos was achieved two days after Lockyer and Johns played as Australia's halves pairing for the final time.
During the State of Origin period Newcastle suffered a form slump; losing seven of eight matches with a bye sandwiched in between.
However, unlike previous years when Michael Hagan was unavailable due to his Queensland Origin commitments, he was fully in charge of the Newcastle team during this period.