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This week in pm-clinic: the white knight

After a few weeks on hiatus, the pm-clinic is back. With a vengeance. New tales of management challenges and great advice await.
This week in the pm-clinic discussion forum:

I was asked by to take over a troubled project. This group is managed by my boss’ peer so I am now dotted-line-reporting to him for this project. This
senior-level manager is not happy about being forced to use me. The project teams are strong but have been micro-managed by said manager who repeatedly
puts the cart before the horse – one of the major reasons the project is in trouble.

I, as the white knight,” am being asked to keep the listing ship from completely sinking. Expectations for getting it on track are high, while still meeting some of the originally set timelines.

How do I both manage this project and a sponsor who doesn’t want me as the PM?

-Signed, the white knight