The Magic Council dissolves Phantom Lord and disapproves of Fairy Tail's actions, but is unable to force them to disband. Makarov's friend from the council, Yajima, suggests that Makarov retire and choose a successor. However, Makarov refuses upon hearing the destruction caused by Natsu and his friends on their latest mission. Meanwhile, the heroes are forced to perform a play for a failing theater. Though they seemingly ruin the play and destroy the theater with their antics, it greatly entertains the audience and becomes a success.