Complex sentence: Otto, on the other hand, had accepted Church anointment and regarded his kingdom as a feudal monarchy with himself holding the "divine right" to rule it, allowing him to reign without concern for the internal hierarchy of the various kingdoms' noble families.
Split into simpler sentences: Otto, on the other hand, had accepted Church anointment and regarded his kingdom as a feudal monarchy with himself holding the "divine right" to rule it. He reigned without concern for the internal hierarchy of the various kingdoms' noble families.