[8] In his second year back with the Dons, they again made the 2001 Grand Final, except this time they lost to the Brisbane Lions by 26 points.

Melbourne under Bailey finished 16th in the last position on the ladder at the end of the 2008 season, claiming the wooden spoon with three wins and 19 losses.

[16] The 2009 season started with three losses for the Demons under Bailey, before an inspiring and unexpected win by eight points against Richmond in their round four clash at the MCG.

Again the club suffered several more losses following the win, as well as a nail biting draw to Collingwood in the annual Queens Birthday Clash.

Starting the season with a draw against Sydney, the team was well beaten by Hawthorn in the second round, despite leading at half time.

Consecutive victories followed, with a narrow win over the Brisbane Lions, and league newcomers Gold Coast by 90 points.

Following a bye, the club suffered a 54-point defeat at the hands of West Coast, before bouncing back the following week, thrashing Adelaide by 96 points, recording their biggest ever victory against them.

Melbourne had the bye the following week, before yet another turnaround followed in a win over Port Adelaide in Darwin, before losing to Hawthorn by 54 points the following round.

[24][25][26] Bailey then made statements, interpreted by some as an admission of tanking, at the press conference which followed his sacking as Melbourne Football Club senior coach in August 2011.

This related most specifically to a meeting in July 2009, which became known colloquially as "the vault", in which Connolly allegedly openly discussed the potential benefits to the club of tanking.

[1][33][34][35][36] In a statement released by Adelaide on 27 November 2013, it was revealed that Bailey was suffering from cancer and was on indefinite leave.

[37] He never returned to work, though he did visit the club in late 2013 and early 2014 during pre-season training before his untimely death in March.