This City is Ours series 2 ending explained: Michael was back on top (at a huge cost) and what it means for series 3

How many sleeps until series 3?
Helen Fear

This City is Ours series 2 delivered everything we hoped it would and more, but not without huge loss, sacrifice, blood, and tears – and the bittersweet ending set up series 3 nicely.

At the beginning of the eight-part series, Michael had walked away from the Phelan crime family. He was where he wanted to be, or at least where he *said* he wanted to be. Beside Diana, who was pregnant with his child.

But viewers suspected there was a nagging doubt. Could Michael, who lived and breathed a life of crime, ever be happy with a quiet life, running a restaurant, in Spain?

We soon had out answer when he was soon dragged back into the business… As This City is Ours series 2 played out, it was clear that Michael was back when he belonged – and doing what he was good at. And the Phelan family needed him. But for how long? And where would this leave his relationship with Diana?

Here’s the ending of This City is Ours series 2 unpacked, and what it all means for series 3.

***Warning: spoilers from the ending of This City is Ours series 2 ahead***

This City is Ours series 2 promo shot
This City is Ours series 2 was every bit as good as we hoped it would be (Credit: BBC One)

What happened in the ending of This City is Ours?

As if the seven episodes leading up to the season finale wasn’t clue enough, the ending of This City is Ours series 2 was bloody, vengeful, and full of pain. Of the physical and emotional type.

Ozzie got his comeuppance, as did Freddie and Felipe. The Phelan clan weren’t shy of delivering retribution. At the end of episode 7, the Phelans learnt that Freddie was the shooter who killed Rachel Duffy. Of course, Ozzie sold him out for money. Ozzie wanted to give his estranged son Liam the money to make amends for his time in prison, but he had to sell out another teenager to do it…

Of course the Phelans wanted the avenge Rachel’s death. With thanks to the tracker Ozzie had placed in Freddie’s backpack, the Jamie Phelan and Bobby Duffy were able to track Freddie down. But he was able to escape after a tip off from Michael. But he didn’t make it to the ferry to flee into Ireland as planned.

Instead, with Diana’s words weighing heavy on his mind, Freddie did the right thing and gave himself up. He faced the music, knowing that he would be released with enough years to still enjoy his life. Instead of a life on the run, he would face his punishment. In the series finale, we learnt that Freddie had been arrested for the murder of Rachel Duffy and was on remand.

But we all knew it was Ozzie who had manipulated the vulnerable 19-year-old into carrying the gun that eventually killed Rachel. And there were plenty of people who wanted Ozzie dead.

The Phelan ‘firm’ got back together again and planned to expand

The series had been slowly building up to it but, in the ending of This City is Ours, Michael was back working for the “firm”. And not just working for the Phelan family, he was running it. Without him, the firm was in tatters. Michael who had been Ronnie’s right hand man had the right contacts for suppliers, and the right steely attitude. Frankly, when Michael wanted to be, he was the most dead-eyed ruthless killer in Liverpool. Diana saw it too, which is why she needed him to walk away.

Elaine told Michael: “I want you to take over from Ronnie. We’re in trouble. We’re on our knees. Broken. Broken-hearted. But something has to happen with Freddie. Possibly Banksey.”

A deal was made. Michael would take over the firm, putting all beef from the past aside. To seal the deal, the firm agreed their first act would be avenging Rachel. And, to a lesser extent, Freddie who had been radicalised by Ozzie into waving a shotgun around. As Michael told the firm: “Freddie pulled the trigger, but it was Ozzie Thompson who loaded the gun.”

Together, in blood-thirsty scenes, Michael, Jamie, Bobby, and Banksey executed Ozzie by shooting him four times – one bullet each. There was no glamorising violence here. It was grim not glamour.

After Ozzie’s death, Michael told the gang: “Now we’re a firm.” The next steps? Expanded their drug empire to 250 kees (kilos) of “lemo” (cocaine) to sell across Liverpool.

Julie Graham as Elaine Phelan in This City is Ours
Elaine Phelan welcomed Michael back into the fold, but for how long? (Credit: BBC One)

This City is Ours series 2 ending explained: Felipe was killed

Felipe appeared to be ever-more volatile. When we saw him following Diana across Liverpool, we knew it would not end well. He followed her to her house, and forced his way in. Terrified, she grabbed a knife. In a tense confrontation, Felipe finally explained why he hated Michael so much.

He told her that the man he loved had died, and he had not been able to say goodbye. Since the man’s death, he’s been left with an “emptiness” inside. He told Diana he wanted to join his dead lover, and walked straight into the knife she was holding. It was a suicide of sorts, but one that served a specific function – it potentially set Diana up for murder. But, more importantly, it would mess with her head. Viewers knew that Diana had already killed a man. She murdered her own father to stop him abusing her mum. Her mum subsequently took the blame, and went to prison for the crime.

Felipe wanted to die. If it was at the hands of Diana even better. This would get the revenge he needed from Michael, who he blamed for his partner’s death. He knew, in some way, Diana being responsible for his death would act like a rot in their relationship. But it wasn’t Diana’s knife that killed him in the end. Michael made sure of that.

Who was Luis in the ending of This City is Ours series 2?

In the ending of This City is Ours, viewers discovered why Felipe had an obsession with Michael and Diana. And it wasn’t anything to do with his dead brother Ricardo.

In fact, Felipe held Michael responsible for the death of his partner Luis. Michael described Luis as a “junkie with a loose tongue”. He admitted to shooting him, but not to killing him.

He said: “It was my first time in Colombia. It was a test [to prove my loyalty] to Ricardo. I didn’t have a choice. I put three bullets into a dead body.”

Michael insisted that Luis was already dead when he shot him. But Felipe reminded him that Michael shot him in the face, saying: “You took away his face, his beautiful face.” Lastly, Felipe said to Michael: “I am passing my pain onto you. Welcome to winter.”

Enraged, Michael shot Felipe dead, although he would likely have died anyway from his stab wound. All this while a devastated Diana was in the next room. Michael killing Felipe was perhaps the final straw for Diana, whose life had been put in danger by Michael’s violent past.

James Nelson-Joyce as Michael Kavanagh in This City is Ours
Michael Kavanagh made his choice in the ending of This City is Ours series 2 (Credit: BBC One)

Did Diana and Michael split up in the ending of This City is Ours?

Michael’s return to the firm had devastating consequences for Diana and her unborn baby. If he expected her to stand by and let him put them in danger, he was very much mistaking.

In an attempt to explain his motives, he told her: “”I deserve more from the business that helped to build. I want to run a restaurant with you, and have our own little vineyard. But we need money to invest.”

How would he get the money? “By doing what I’m good at. Running Ronnie’s business.”

Anyone could tell Michael got a buzz from running the firm. He had made his choice. And Diana subsequently made hers – she and her unborn baby was walking away from Michael. She sent her mum, newly released from prison, to tell Michael it was over for good.

Diana’s mum Lesley knew all about being with a toxic man. And she knew all about where is could end up – in prison. She told Michael never to contact Diana again. To leave her to live her life without crime.

Of course, we knew that Michael and Diana still loved each other. We suspect (hope) that she’ll be back at some point in his future.

Most importantly perhaps, is how losing Diana would alter Michael’s behaviour. She was the only grounding thing in his life. The only good thing. Surely he will go totally feral without her calming influence…

Could Michael trust the Phelans?

Michael was at the top of the Phelan firm at the end of This City is Ours series 2. But that doesn’t mean he’ll stay there. After all, he’s not really family. And neither Elaine or Jamie would ever forgive him for killing Ronnie in series 1.

Elaine told Jamie: “We need Michael. Doesn’t mean we forget or forgive. It means we wait. Until there’s a time we don’t need him.”

Meanwhile, the firm agreed to give Cheryl what she wanted – compensation for the death of her husband Davy who was killed in series 1. They would give Cheryl Davy’s wage.

All this paves the way for a very interesting series 3…

Hannah Onslow as Diana in This City is Ours
Diana made a difficult decision at the end of This City is Ours series 2 (Credit: BBC One)

What else happened in the ending of This City is Ours series 2?

James Nelson-Joyce, who plays Michael Kavanagh, admits he was “shocked” when he read the script for the final episode.

His co-star Hannah Onslow, who portrays Diana Williams, added: “Series two is all about consequences. The consequences of people’s decisions and how your past will always sneak back up. How you can’t run away from what you’ve done and the decisions that you’ve made. How you can go in one direction with your life, or you can go in the other, but it’s your choices that ultimately define you. In this series, we really see that come into play.”

Is there a series 3 of This City is Ours?

BBC One has commissioned This City is Ours for a series 3. And they commissioned it even before its series two premiere.

Filming on the award-winning drama will take place primarily in Liverpool in 2027.

On the commission of series three, creator and writer Stephen Butchard said: “Following the quite breathtaking response to series one, myself, the cast and our wonderful crew were all determined not to drop the ball and endeavour to deliver an even better series two! No spoilers, but I’m hoping this fantastic early commission from the BBC for a third series is an indication that we may have come close to doing just that.”

Rebecca Hodgson, executive producer at Left Bank, added: “The world that Stephen Butchard has created is so special and one that we all love spending time in. Our amazing cast and crew, led by lead director Saul Dibb, have stuck with us for two series, and it’s testimony to their talent that we have been commissioned for a third series.”

Series 3 will be another eight episodes long. Casting details will be announced in due course. We’ll have to wait and see if Hannah Onslow will be back as Diana, or if she has walked away for good.

Read more: This City is Ours: Why Ronnie Phelan actor Sean Bean ‘walked away from the set of BBC drama really upset’

This City is Ours series 1 and 2 are now available to watch and rewatch on BBC iPlayer.