Save for a brief spell in the United States at age 32, Karanka played solely in Spain for Athletic Bilbao and Real Madrid, appearing in 275 La Liga matches over 13 seasons and winning six honours with the latter.

He then managed Nottingham Forest and Birmingham City in the Championship, before brief top-flight spells at Granada in Spain and Maccabi Tel Aviv in the Israeli Premier League.

Born in Vitoria-Gasteiz, Álava, Karanka played as a youth with hometown club Deportivo Alavés and finished his formation with Basque neighbours Athletic Bilbao.

He made his La Liga debut on 7 November in a 1–1 away draw against Celta Vigo (90 minutes played),[5] going on to feature in exactly 100 league matches in his three full seasons before joining the German coach at Real Madrid in 1997 (replacing Alkorta, who had just rejoined Athletic Bilbao).

[12] In his only season in MLS, he helped Colorado to the Western Conference play-off final, despite having his attempt saved by Darío Sala in the penalty shootout victory over FC Dallas in the semi-finals.

[20] On 25 April 2015, in the club's penultimate game of the season away to Fulham, Karanka sent goalkeeper Dimitrios Konstantopoulos forward for an added-time corner kick with the score 3–3.

Responsibilities for the subsequent match, at Charlton Athletic, were handed to his assistant Steve Agnew,[25] but the Spaniard returned to lead the team to the top division after a seven-year absence, as league runners-up.

He was sacked on 16 March 2017 with the team three points from top-flight safety and without a league win in the new year (while their defence was the fifth best in the division, their attack was the worst with just 19 goals from 27 matches, and he had disagreements with players, fans and the board).

[29] He replaced Gary Brazil, who had been acting as caretaker manager following the dismissal of Mark Warburton on 31 December 2017, who had in turn left the side sitting 14th in the league.

[43] Following a 4–1 defeat at home to Levante on 17 April 2022, Granada dismissed interim head coach Rubén Torrecilla and appointed Karanka as his replacement, tasked with using the remaining six matches to avoid relegation from La Liga.

The event focused on women's football, and participants included Ronaldo, Julen Lopetegui, Monchi, Iraia Iturregi, Jorge Vilda and Mila Martínez.