Millwall McCarthy became player-manager at
Millwall in March 1992, succeeding
Bruce Rioch. In his first full season (1992–93), he was still registered as a player, but made only one further appearance (in the
Anglo-Italian Cup), before he became solely a manager. He took the club to the play-offs in 1993–94 after a strong third-place finish, but they lost out to
Derby County in the semi-finals. During the 1995–96 season, McCarthy became the prime candidate for the vacant
Republic of Ireland manager's job, after the resignation of
Jack Charlton. After a protracted period of speculation, McCarthy was officially appointed on 5 February 1996, two days after his resignation at the club. Despite sitting a comfortable 14 points clear from the relegation zone at the time of his departure, Millwall would go on to suffer the drop (by virtue of goals scored) after McCarthy's departure. His loan signings of the underachieving
Russian internationals
Sergei Yuran and
Vassili Kulkov from
Spartak Moscow, who each received a £150,000 signing-on fee and were being paid five times the wage of the rest of the first team, would later be cited as one of the main reasons Millwall were eventually relegated under
Jimmy Nicholl, although it cannot be proven.
Republic of Ireland In February 1996, McCarthy became the new manager of the Republic of Ireland football team following the resignation of
Jack Charlton. His first game in charge was a friendly international against
Russia on 27 March which finished in a 0–2 defeat. After two narrow failures to qualify for the
1998 World Cup and
Euro 2000, McCarthy took the nation to the
2002 World Cup held in South Korea and Japan after a 2–1
play-off aggregate win against
Iran. Before the tournament, McCarthy was involved in a very public and bitter
spat with star player
Roy Keane, who was sent home the day before it began. The conflict occurred after Keane had questioned the quality of the preparations and facilities the team were using. Despite this furore, McCarthy's team reached the second round but were eliminated by
Spain in a
penalty shoot-out (after having already missed and scored a penalty in normal time). In spite of this, the Keane issue remained, with the proportion of blame undecided. Many in Ireland sided with Keane – particularly following a televised interview in which details of poor preparation were revealed – and demanded McCarthy's resignation both during and after the tournament. An independent inquiry into the organisation's handling of the squad's preparation later commissioned by the
Football Association of Ireland created a damning report, leading to general secretary Brendan Menton tendering his resignation. Criticism of McCarthy in the media became increasingly intense after a poor start to Ireland's
qualifying campaign for
Euro 2004. In particular, his persistence with several players and tactics that some perceived to be inadequate did him damage, as did a 4–2 away defeat to
Russia and a 2–1 home defeat to
Switzerland. Under mounting pressure, McCarthy resigned from the post on 5 November 2002. During his 68 games in charge, the Republic of Ireland won 29, drew 20 and lost 19.
Sunderland On 12 March 2003, McCarthy was appointed manager of struggling
Sunderland as an immediate replacement for
Howard Wilkinson, who was sacked after six successive
Premiership defeats left the club facing near-certain relegation. The following season, after relegation, he took Sunderland to the
First Division promotion play-offs, but lost in a penalty shoot-out to
Crystal Palace after Palace had scored a stoppage-time equaliser. McCarthy completed the turnaround of the club in the
2004–05 season. The Black Cats returned to the Premier League as Football League Championship champions, amassing 94 points. After a poor season and with the club 16 points from safety with only 10 games remaining, he was dismissed on 6 March 2006.
Wolverhampton Wanderers manager in 2011 On 21 July 2006, McCarthy was appointed manager at Championship side
Wolverhampton Wanderers, replacing
Glenn Hoddle who had resigned a fortnight earlier. He signed a 12-month rolling contract The team managed to make the promotion play-offs in his first season, where they lost out to local rivals
West Bromwich Albion over two legs, losing 3–2 at
Molineux and 1–0 at
The Hawthorns. In the
2007–08 season he took the club to within a single placing of a successive play-off finish, ending seventh, losing the coveted sixth place to
Watford by a goal difference of only one. The campaign had also seen him linked with the international positions of
South Korea and his previous post as Republic of Ireland manager. The
2008–09 season started well for McCarthy as he won the August
Championship Manager of the Month Award, after seeing his side reach the top of the table, eventually going on to match Wolves' record start to a season (equaling the 1949–50 season). Wolves maintained their position at the top of the table over the following months, and McCarthy again won the Manager of the Month Award for November. After maintaining top spot since October, McCarthy's Wolves secured promotion to the Premier League by beating
QPR 1–0 on 18 April 2009. The following week McCarthy clinched his second Championship as a manager after a 1–1 draw at his hometown club
Barnsley. He won the Championship Manager of the Season Award at the conclusion of the campaign, his side having led the table for 42 of 46 games. The following season, McCarthy kept Wolves in the Premier League, his first success at this level in three attempts. The club assured safety with two games to spare, eventually finishing 15th, their best league finish since 1979–80, and their first ever survival in the modern Premier League. However, in the process of keeping the team in the top division, Wolves and McCarthy were fined £25,000 for fielding a weakened team for a fixture at
Manchester United and thus breaking the Premier League rule E20. The Premier League also stated that the club had failed to fulfil its obligations to the league and other clubs in the utmost good faith and was therefore in breach of Rule B13. The team spent the majority of the 2010–11 campaign mired in the relegation zone, yet managed to defeat the likes of
Manchester City,
Manchester United,
Liverpool and
Chelsea. A final day loss to Blackburn put them in danger of relegation, but results elsewhere meant they narrowly survived in 17th place, one point ahead of relegated
Birmingham and
Blackpool. This gave McCarthy the distinction of being the first Wolves manager in thirty years to maintain the club's top flight position for two successive seasons. The 2011–12 season began well for McCarthy and, after three games, his team topped the Premier League with 7 points. However, results tailed off and by January they had once again entered the relegation zone after nine games without victory. That same season Wolves sold £15 million worth of players and with the board allowing McCarthy to spend just £12 million it seemed inevitable when McCarthy was sacked as Wolves manager on 13 February 2012 after a run of poor results, culminating in a 5–1 home defeat to
local rivals West Bromwich Albion. The club was relegated at the end of the season with three games to spare.
Ipswich Town in 2016 On 1 November 2012, McCarthy was appointed manager at
Championship side
Ipswich Town McCarthy's appointment came in the wake of
Paul Jewell's departure by mutual consent. McCarthy won his first match in charge as Ipswich manager on 3 November 2012, away at Birmingham, 0–1. This broke a 12 match winless run in the league, 13 matches in all competitions. McCarthy guided Ipswich past Burnley on 10 November – the first home win since March after a late
DJ Campbell winner. The match ended 2–1. With a win against Nottingham Forest in late November, his sixth game in charge, McCarthy had successfully guided Ipswich out of the relegation zone. McCarthy's Ipswich stopped Millwall's 13-match unbeaten run with a 3–0 home win on 8 December. On 2 February 2013, McCarthy's assistant
Terry Connor took charge of a 4–0 rout of
Middlesbrough while McCarthy was ill. McCarthy then guided Ipswich to safety, finally finishing in 14th place. Prior to the 2013–14 season, McCarthy had signed 10 new players. McCarthy's first full season in charge of Ipswich ended with the club finishing in 9th place. On 30 June 2014, McCarthy and Terry Connor agreed a new three-year deal with Ipswich. The following season he led the club to their first appearance in the Championship playoffs in ten years with a sixth-placed finish, before losing out to rivals
Norwich City in the semi-finals. During the 2015–16 season McCarthy and assistant Terry Connor renewed their contracts for a further two seasons, with the option to extend until 2020. McCarthy led Ipswich to a 7th-place finish in his third full season at Portman Road. McCarthy's fourth full season in charge ended in a 16th-place finish. On 29 March 2018, Ipswich Town announced that McCarthy would be leaving the club at the end of the 2017–18 season on the expiry of his contract, along with assistant manager Terry Connor, after talks with owner Marcus Evans. His final season with the club was marred by a fractured relationship between him and the club's supporters, with many supporters voicing their dissatisfaction with McCarthy's defensive style of play and McCarthy branding them as "numbskulls". He left the club earlier than expected on 10 April 2018, shortly after a 1–0 home win over Barnsley.
Return to the Republic of Ireland On 25 November 2018, McCarthy was appointed manager of
Republic of Ireland for the second time in his career, replacing
Martin O'Neill.
Robbie Keane, a legend for the national team, was appointed as one of McCarthy's assistant coaches, alongside
Terry Connor, who had previously assisted McCarthy at both
Wolverhampton Wanderers and
Ipswich Town. In June 2019, the national team drew 1–1 away to
Denmark, before defeating Gibraltar once again, this time by 2–0, at the
Aviva Stadium; four days later, McCarthy guided them to the top the Group D table, having taken ten points after four games. On 5 September 2019, McCarthy's side once again came from behind to draw 1–1 with
Switzerland, which enabled them to remain at the top of their qualifying group, with three matches to play remaining. However, a 0–0 draw in
Georgia, followed by defeat in Switzerland, left Ireland needing a win at home to Denmark to secure a top two spot. A 1–1 draw saw the Irish needing to win the play-offs to qualify. On 4 April 2020, amid the global
coronavirus pandemic, McCarthy stood down as manager and was immediately replaced by
Stephen Kenny, who had been in charge of the nation's
under-21s, for the play-offs.
APOEL McCarthy joined
Cypriot First Division club
APOEL as manager on 2 November 2020; he signed a contract until 2022. He was sacked by the club on 5 January 2021 following a run of 2 wins, 1 draw and 5 defeats in his 8 games in charge.
Cardiff City On 22 January 2021, McCarthy was appointed as manager of
Cardiff City, following the sacking of
Neil Harris. He signed a contract until the end of the season. His reign started with games against two of his former teams from his playing-days; Barnsley and Millwall – both of which ended as draws. His first win as Cardiff manager came in the following game, a 2–0 win against
Bristol City. After making an unbeaten start to his reign at the club, a run that included a six-game winning streak, McCarthy signed a new two-year deal with the club on 4 March 2021. Cardiff finished the season in 8th place. Despite losing just one of their opening six matches at the start of the following season, a poor run of results followed which saw Cardiff drop as low as 21st in the table. On 23 October 2021, after suffering a club-record eighth successive loss of the season at the hands of
Middlesbrough, McCarthy left the club by mutual consent.
Blackpool On 19 January 2023, McCarthy was appointed head coach of the Championship club
Blackpool on a short-term contract until the end of the season. On 8 April 2023, McCarthy left Blackpool by mutual consent, following a 3–1 home defeat to Cardiff the previous day. He achieved two wins in his 14 games in charge, losing nine of them, which left the club second-bottom (where they were when he took over). "With results on the pitch not improving in recent weeks, the decision has been agreed by both parties that a change is needed," the club said in a statement. ==Personal life==