Queen Griddle is enraged that the Duchess of Yorkshire has a villa in Spain and she (Griddle) doesn't. Sir Loungelot and Flicker go to the real estate place called Century to find one, and Loungelot decides on a villa at the beach in Spain.
When King Allfire, Griddle, Flicker, Princess Flame, Sir Loungelot, Sir Burnevere, Sir Blaze, and Cinder and Clinker arrive, however, they see that it is full of cows, a gang of cows called the Mooers led by the bully Cowsius Clay (or Cauwsiuclay). Allfire and Griddle complain to King Don, the king of Spain, who suggests a boxing match between Loungelot and Cowsius. Loungelot insist that Flicker fight Cowsius instead.
However, the entire thing is a real estate scam by King Don and Cowsius, so that everyone will bet on Flicker but lose when Cowsius beats him, since King Don will bet on Cowsius.
When Flame is walking with Blaze, who buys a new cape, Flame finds a newspaper on the ground that says Cowsius was undefeated in his last 800 battles and killed most of his opponents, and that King Don is his promoter and manager. She realizes King Don's plan and tells Flicker, but he won't back out of the fight because the Code of Chivalry says a dragon should not wimp out on a bet.
Flicker and Cowsius fight, and Cowsius beats up Flicker before Flame throws Blaze's red cape to him. Cowsius attacks the cape instead of Flicker, enraged by the color red, and Flicker holds it in front of a dead cow (which acts as a punching bag). When Cowsius hits it, it swings back and hits him, dazing him, and Flicker blows him to the ground, knocking him out and winning the match.
King Don loses most of his money on the bet, and the rest of the Mooers demand that he pay them for making them stand on the beach, and they chase him away.