While there is abundant literature on how teachers can and should manage controversial issues (CI) in schools, far less attention has been paid to how school principals manage CI. We explore this topic by applying a socio-temporal understanding of agency to explore how school leaders understand their role in managing the specific controversial issue of racism. The study comprises interviews with principals in which they express how they understand and manage the controversial issue of racism. The findings show that the principals’ primary temporal direction of agency has consequences for how they manage racism. Principals primarily directed towards the present (practical-evaluative) or the future (projective) demonstrate more expanded agency, while principals primarily directed towards the past (iterative) display less expanded agency in managing the controversial issue of racism. One finding of the study is that principal deal with controversial issues seemingly to the same degree as teachers, however, they do so in different ways and under different circumstances. We therefore propose a conceptual shift from controversial issues to controversial spaces to better adhere to the specificities of principals’ encounter with controversy.