 When Arthur Fairclough resigned following Leeds United's relegation into the Second Division at the end of 1926–27, the Leeds board recalled Ray as manager in July 1927.Described as "an outspoken character", he developed Bert Sproston, Billy Furness, Eric Stephenson, Arthur Hydes, Tom Cochrane, George Milburn and Jim Milburn into key players for the club.He also signed Charlie Keetley in July 1927, who would go on to become the club's most prolific goalscorer.