After two months of bitter infighting, played out in public much to the chagrin of league officials, peace was finally established at Wednesday's general meeting in Brisbane.
Outgoing chairman Angus Johnson, Paul Williams and Linda Nash - the club's longest-serving directors - all stepped down as part of a mediated agreement that will lock in a $1.8 million funding package from the AFL.
Dissident director Williams was leading the charge for Matthews' return in the wake of the club's sacking of favourite son Michael Voss, while Nash was in Johnson's camp.
Johnson had dug his heels in amid much criticism, earlier this month citing legal advice that suggested Matthews was ineligible for appointment based on the club's constitution.
But on Wednesday Johnson finally exited and passed the baton to Sharpless, the local businessman who only joined the board this month.
Sharpless is deputy chairman of the Springfield Land Corporation and will address the media in his new role for the first time on Thursday.
Matthews, who coached the Lions to premierships in 2001-2003, will join the board as football director after being appointed as an `expertise director' in accordance with the club's constitution.
His rubber-stamped return came barely 24 hours after Williams and fellow Lions director Mick Power launched their "Fresh Start" rival ticket, also featuring Matthews, that was set to challenge Johnson at the club's emergency general meeting (EGM) on November 13.
The Lions confirmed Johnson's departure on Wednesday night, adding that the EGM would now be scrapped.
"As a result of the resolution of this matter, there is no longer a need to hold the EGM," a club statement said.
"However, members will still have an opportunity to vote on the change to the rights of life members in the constitution and on the Lions' guernsey at December's AGM."
Power and Williams fell out with Johnson over the dumping of coach Voss and failure to lure Sydney's premiership-winning mentor Paul Roos to the club two months ago.
Matthews had confirmed at the "Fresh Start" launch on Tuesday that he had been eyeing the football director role.
"I ummed and ahhed over it for the last couple of years but just couldn't bring myself to do it under the current leadership (Johnson)," he said.
"But under Paul and Mick I am prepared to put my hand up."