On 3 June 2011, Cardiff City had reached an agreement with long term debtors, PMG, as part of the agreement some of the debt would be turned into shares and Mike Hall would rejoin the board. On 17 June, former Watford manager, Malky Mackay joined on a three-year deal, Watford were paid an undisclosed fee for his services. In his first season, Mackay lead the team to a successful League Cup run in which the club reached its first ever final in the competition, where they lost to Liverpool on penalties. Cardiff ended their season in the play-off positions, for the third season running, however they failed for the third time losing to West Ham United in the semi-finals.