Cleary, a former school principle, arrived at Brookvale 10 weeks ago with one of his first major overhauls involving telling Fulton’s daughter, Kristie who was employed by the club, her services were no longer required.

Fulton, who is head of football, and Cleary were formerly close, but that friendship has gone out the door.

Fulton’s two sons are also currently employed by the club.

Penn said hostilities between the two were yet to be resolved.   

"I think it's fair to say that it's a process that we're working through," Penn told Fairfax.

"As with the CEO of any organisation they should have jurisdiction over their entire operation.

"Certainly in terms of involvement and input, given that the CEO and the chairman are ultimately responsible for any company, they need to be across everything. That's always going to be the case. That certainly doesn't mean they need to be picking the team or involved in all recruitment matters. That's why you pay football experts to bring that to the table. But certainly he has a clear mandate corporately of where we want to take the organisation.”

Manly are winless from two starts with the team showing little character during Saturday’s 38-18 loss to Souths.

And with upcoming games against the Cowboys, Bulldogs and the Roosters over the next three rounds, the side could well be none from five to start the season.

The Sea Eagles have not collected a wooden spoon in their 70-year history but are now second favourites behind the Knights to finish last.

Penn knows a club civil war will only exacerbate the side’s diabolical form.  

"We're trying to resolve it,” he said. “The fact is we have to resolve it for the benefit of the whole club.

"We just have to bunker down. No one needs the distraction. The team know what they need to do and we don't need to distract them."