The Season 1 finale of "The Walking Dead: Dead City" sets up future storylines and introduces the New Babylon Federation as a new community and potential antagonist. The Dama, the leader of the New Babylon Federation, wants Negan for his charisma and reputation in order to unite the factions of Manhattan against her enemies. Negan realizes that Maggie has been lying to him throughout their journey and exposes her lies, leading Maggie to contemplate either rescuing or killing Negan in Season 2. The finale also reveals why the Dama wants Negan captured.

The Dama foresees war between her group and the New Babylon Federation.

She believes that uniting the factions of Manhattan is their best chance of survival, and Negan's charisma and ruthlessness make him the perfect candidate for the job. Negan's past deeds, particularly his war with Rick's group and the Saviors, have made him a legendary figure in the post-apocalyptic world. Negan's future with the Dama is uncertain, but it is heavily implied that the Dama will have Maggie's son Hershel killed unless Negan cooperates. Whether Negan wants to put on the persona of his former self again is unclear, but the ending suggests that he will become a bigger and upgraded version of the Sanctuary, establishing himself as a formidable leader in Manhattan.

The finale also leaves open the question of whether Negan actually killed Ginny's father. While it is confirmed that Negan killed one of the men in New Babylon who was Ginny's father, his claim that protecting Ginny was merely a debt is likely a lie. Negan has developed a genuine paternal bond with Ginny and is committed to giving her a brighter future. Maggie's lies are finally exposed in the finale, and Negan realizes that she has been deceptive throughout their journey. Maggie's grand deception was obvious from early on, and her plan to capture the Croat and take revenge on Negan is revealed.

Maggie's plans for Negan in Season 2 are unclear, but her realization that seeking revenge has consumed her life may lead her to either rescue or kill Negan in order to move on. Hershel's capture and subsequent release also raises questions. Maggie's son appears to have developed an affinity for the Dama, despite having one of his toes removed on her orders. Hershel's attitude toward his mother is mixed, and whether he will betray her in Season 2 is uncertain. Finally, the finale introduces the New Babylon Federation as a potential new villain in the Walking Dead universe.

Marshal Perlie lies to his superiors, claiming that he killed Negan when he was actually helping him escape. Perlie's lie reveals a lack of trust in his community and sets up the New Babylon Federation as another menacing force in the post-apocalyptic world. Overall, the Season 1 finale of "The Walking Dead: Dead City" sets up future storylines, introduces new communities and potential villains, and leaves the fate of Negan, Maggie, and Hershel uncertain.