With Batty providing midfield bite and cover for the defence, Newcastle were able to challenge the dominant team of the day, Manchester United; Newcastle finished up as runners-up in the league to Manchester United twice (1995–96 and 1996–97). Keegan commented that it was not until he worked on the training ground with Batty on a daily basis that he realised just how good a player he was. Batty's work-rate, tackling and unselfish play for the good of the team, therefore allowing the more skilful ball-players to perform, were appreciated by manager, colleagues and fans alike. His first full-season at St. James' Park saw the departure of Keegan, with Kenny Dalglish taking over and guiding the club to another runners-up spot. However, the 1997–98 season was a disappointing one, as Newcastle could only finish 13th. They did however reach the 1998 FA Cup Final, in which Batty started. The arrival of new manager Ruud Gullit in August 1998 marked the start of a team rebuild, and Batty made the move back to Leeds United in December 1998 for £4.4 million.