In Cobra Kai Season 5's fourth episode, “Downward Spiral,” master manipulator Terry Silver threatens the security of Daniel’s family. First, though, Carmen (Vanessa Rubio) gets back from work, there is a plumbing issue, and she tries to make a call, which is interrupted by someone at the door. It’s Johnny (William Zabka) and they indulge in a little afternoon roleplay. This is a dream sequence (from Carmen’s POV) of family fun on the beach, Johnny on a motorbike (with their baby in a carrier strapped across his chest), lunch outdoors, and passionate frenzies — unfolding with a terrible, cheesy 80s music soundtrack. Carmen wakes up happy.
Daniel (Ralph Macchio) is at home reviewing CCTV footage with Chozen (Yuji Okumoto) and talking about Silver, if he’s prepared to go as far as burning down Mike Barnes' (Sean Kanan) furniture warehouse, why hasn’t he attacked him yet? Chozen compares Silver to a snake, waiting patiently to strike, but in the meantime, Mike has left town while the insurance company investigates. Chozen will not allow Silver to attack on his watch. Amanda (Courtney Henggeler) comes downstairs and asks for advice on her outfit, worried it’s too much. Both men tell her she looks beautiful. Daniel and Amanda are heading to a charity auction, mostly because she’s interested in philanthropy and Daniel wants to become involved in local politics. He tells Chozen to be vigilant and watch out for Silver.
Johnny is at his apartment job-hunting and chatting with a potential future employer about remuneration packages. He’s giving them his Social Security number when someone knocks on the door. It is a sober Shannon Keene (Diora Baird) and she has come to collect Robby’s (Tanner Buchanan) stuff. His absence is finally explained by the fact that he’s spending the summer at his grandparent's cabin. Shannon is impressed that Johnny is now a functional adult when she sees his apartment, but she can tell Carmen is pregnant by Johnny’s behavior and overwhelmed face. Gobsmacked, Johnny mentions there is still a lot to figure out and people to tell. Carmen wants a house with a yard, but yards aren’t cheap. Shannon has a proposition for a despondent Johnny and agrees to set everything up for him with a new position.
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Sam (Mary Mouser), Moon (Hannah Kepple), and Yaz (Annlisa Cochrane) are having a day out at the local waterpark. Anthony (Griffin Santopietro) is ogling Yaz and Samantha tells him to go away. Moon thinks it's funny, while Yaz wants to play mind games with him and pretend she’s into him, but Sam wants no part of it. Moon asks how the "eat, pray, love" phase is going, and Sam tells her she is enjoying focusing on herself for a change and leaving the karate nonsense behind her. Hawk (Jacob Bertrand) and Miguel (Xolo Mariduena) show up, Moon acting as though she "totally forgot" she’d invited the boys along. Miguel and Sam remain friends, so no harm is done, but Miguel behaves even more oddly than usual, sitting on the lounger next to her.
Robby arrives and Tory (Peyton List) is surrounded by sycophants. She missed him and lets him know by kissing him passionately. Tory wants to know what happened in Mexico and Robby lets her know it wasn’t really a holiday, but he worked out some issues with his dad. Meanwhile, he's worried about her; Terry Silver is dangerous, and Cobra Kai is not a safe place for her. Tory is a big girl, she won’t have anyone tell her what to do, and she’ll make her own decisions. Kyler Park (Joe Seo) and Kenny Payne (Dallas Dupree Young) are gossiping about Robby abandoning Cobra Kai when Kenny spots Anthony, and an evil grin on his face emerges.
Daniel and Amanda arrive at the charity auction in style. Daniel has deja vu, has he been here before? Amanda is certain they have not. The founder thanks both for attending the event. Amanda would love to work with underprivileged kids and maybe the event could be a stepping stone. She compliments the founder on her beautiful home, and the founder answers that the house belongs to one of their donors. Daniel is seething when Terry Silver shows up, greeting them like old friends. After all, they go back thirty years. Turns out it's Terry Silver’s house. Daniel is livid and suspects Silver orchestrated their invite to the event.
Johnny answers the door to Demetri (Gianni DeCenzo) singing a jingle. He’s come from Techtown and presents a variety of different phones for Johnny. Johnny is looking for anything under 50 bucks and Demetri gives him a secondhand phone. Demetri offers to set up the phone, so Johnny can start making cash. Johnny thanks him for being a dork. Back at Splashorama, Anthony is exiting the pool when Kenny and Kyler corner him. Kenny wants to torture Anthony more, Anthony thinks they are cool, and Kenny's got his own back. The Cobra Kai members ambush him with water donuts and kick him into the pool. Hawk is really annoyed and challenges Cobra Kai, making it his business. Tory breaks things up before they escalate; Miyagi-Do needs to stay on their side of the park, but Tory is starting to see things from Robby’s perspective. Kenny is out of control, and it is Cobra Kai’s fault.
Back at the soiree, Daniel is still obsessing over Terry Silver; he knows the man is planning something, and Amanda doesn’t think Silver is capable of doing any harm at a charity function. Daniel believes they’ve been lured into the lion’s den, but Amanda comforts him, suggesting he relax and have a drink. Terry Silver slithers up to Amanda, handing her a glass of wine and claiming he has no fight with Daniel. His behavior in the past was unforgivable and he isn’t that man anymore, or so he wants Amanda to believe. He manipulates Amanda with tales of Kreese’s incompetence, Vietnam, and how he wants to make the world a better place, "accidentally" letting it slip about Chozen roughing up his potential hires.
At Splashorama, Miyagi-Do is moaning about not having access to the other side of the park. They are not going to adhere to arbitrary rules and will defy Cobra Kai. Sam is immersed in a novel and a puppyish Miguel starts revealing spoilers about the book. Fortunately, Miguel referenced the wrong book. They have some pop cultural back and forth that is meetsy-cutesy and agree to brave the lazy river before Miyagi-Do and Cobra Kai begin arguing over territory. A scuffle starts, and it's up to Tory and Robby to take action and stop it. It draws Miguel and Hawk’s attention away from their leisure time. Instead of fighting, Miguel suggests and recommends an alternative: a race. Tory versus Hawk and whoever wins gets the park.
The auction is kicking off and bidding has commenced. Raising money for Dreams for Teens is underway. Amanda is annoyed by Daniel’s dishonesty and Daniel is outraged by Silver’s duplicity. Silver sneers at Daniel from the back row. Daniel’s presence is requested by the auctioneer – he has donated some rare bonsai trees. He speaks about how bonsai, like people, need a strong foundation to grow. He is passing on Mr. Miyagi’s legacy and the trees to a person attending the function. When the bidding starts, Silver outbids everyone. Silver makes a speech, offering free classes to disadvantaged teens. Daniel gives a warning about taking care of the bonsai, but Silver shrugs it off.
At a pawn shop, Johnny is delivering food. He fiddles with his phone, getting frustrated and slamming it against the counter. Lyle (Matt Borlenghi)tells him to take it easy, but Johnny admits the job "sucks ass" and he’s sick of customers complaining. Lyle tells him to quit if he hates it so much. Johnny brings up his growing family and Lyle says most people have to work a job they hate, so he should get used to it. It pays the bills and allows him time for what matters: his family. He seems to reach Johnny, who leaves but not before Lyle shouts he's still only giving him one star for mauling his food.
At the waterpark, Robby tells Kenny that Cobra Kai isn’t good for him, and he only brought Kenny in thinking it would boost his confidence. Robby can see Kenny changing and blaming himself. Kenny is having none of it. Before Cobra Kai he was being picked on; now he is strong and will never quit. The race between Hawk and Tory is on and everyone is cheering as they sit on their water donuts at the top of the slide. Tory wins, seeing that Kenny punctured his donut, but Hawk hurts Kenny, and Robby throws him into the pool. As a result, Miyagi-Do and Cobra Kai are both ejected from the waterpark.
At the auction, Silver is informing the founder, Eva, about Amanda. Is it anything good? Doubtful. Daniel isn’t going to let Silver interfere with his family, but Silver patronizes Daniel. Is his mind playing tricks on him? Silver insults Amanda and Daniel assaults him, in front of everyone attending, but Silver has played Daniel, as he'd told the founder only good things about Amanda. Daniel is left looking like the villain, having ruined Amanda’s chances of a career in philanthropy. It's another victory for the master manipulator Silver.
Shannon is sorting through Robby’s laundry and receives a call. It’s Johnny, and he wants Robby to come live with him for the summer. He’ll do whatever it takes to make it work. Shannon isn’t sure if he can handle it, but he wants to make up for the past and do right by Robby. Johnny has evolved; he’s no longer young and dumb. Shannon is glad Robby gets to see this side of him. An annoyed Uber customer, who has heard the conversation, reminds Johnny of his stop.
Tory and Robby are having an argument about Cobra Kai and getting kicked out of the park, but Tory’s defense of Cobra Kai makes her part of the problem. Robby gives her an ultimatum – Cobra Kai or him — but Tory refuses to leave her dojo for a boy. Miguel, Hawk, Yaz, and Moon are outside the park, and Miguel asks where Sam is, but the others reveal she split earlier, not wanting to be a part of karate drama. Miguel sees Robby and follows him, and the two teenagers start fighting, but Johnny shows up right in time. Johnny wants the boys to be friends – both are adamant that will never happen. At the LaRusso house, Chozen is watching reality TV with tears in his eyes. Amanda and Daniel come into the room while Daniel is pleading his case, and she doesn’t believe a word. Amanda is sick and tired of the rivalry and the games, but Chozen speaks up on Daniel’s behalf. Enough is enough. Amanda demands he end things right away. Silver has manipulated the situation, and he wants them at each other’s throats. However, Silver will not stop until he has ruined every aspect of Daniel’s life, and he needs to take him down. Amanda says he can handle it, but for now, she needs space — and she's taking the kids with her.
