Following their stay in Nashville, the band returned to Los Angeles and throughout April and May 1968, they worked on completing their new country-oriented album. During this period, Parsons attempted to exert a controlling influence over the group by pressuring McGuinn to recruit either JayDee Maness or Sneaky Pete Kleinow as the band's permanent pedal steel guitar player. When McGuinn refused, Parsons next began to push for a higher salary, while also demanding that the group be billed as "Gram Parsons and the Byrds" on their forthcoming album. Even Hillman, who had previously been Parsons' biggest supporter in the band, began to grow weary of his forceful demands. Ultimately, Parsons' behavior led to a power struggle for control of the group, with McGuinn finding his position as band leader challenged. However, biographer Johnny Rogan has pointed out that the April 1968 release of "You Ain't Goin' Nowhere" served to strengthen McGuinn's position as head Byrd, with the guitarist's familiar drawl occupying the lead vocal spot and negligible input from Parsons, despite the single's obvious country leanings.
Parsons' dominance over the band waned still further during post-production for Sweetheart of the Rodeo, when his appearance on the album was contested by music business impresario Lee Hazlewood, who alleged that the singer was still under contract to his LHI record label, creating legal complications for Columbia Records. As a result of this, McGuinn and Hillman replaced Parsons' lead vocals on the songs "You Don't Miss Your Water", "The Christian Life", and "One Hundred Years from Now" before the legal problems could be resolved.
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