[9] Hibernian manager Eddie Turnbull offered Hansen a professional contract, but he refused because it would have stopped him from playing golf competitively.

[9] Hansen turned down the opportunity to study at the University of Aberdeen, in order to join his older brother John at Partick Thistle.

In the 1980–81 season, Liverpool won two trophies, but did not win a third consecutive league title as Aston Villa finished as English champions.

[17] Hansen also won his second European Cup winners medal in 1981, Liverpool defeating Real Madrid 1–0 at the Parc des Princes in Paris on 27 May.

[17] Bob Paisley, who signed Hansen for Liverpool in 1977, retired at the end of the 1982–83 season and was replaced as manager by long-serving coach Joe Fagan.

Hansen was involved in a controversial incident in the League Cup final at Wembley when he appeared to handle a shot on the goal line.

The first leg at Anfield was an ill-tempered affair with Liverpool captain Graeme Souness breaking the jaw of a Bucharest midfielder.

Manager Joe Fagan retired after the Heysel disaster, and Hansen's friend, teammate and fellow Scotsman Kenny Dalglish was appointed as player-manager.

[20] He gave Hansen the captaincy and the season ended in triumph, as in 1986 Liverpool became only the third side in the 20th century to complete a League and FA Cup "double", following Tottenham in 1961 and Arsenal in 1971.

[21] Hansen was restricted to just six league appearances in the 1988–89 season as a result of a dislocated left knee sustained in a pre-season friendly against Atlético Madrid in Spain.

The honour was given to teammate Ronnie Whelan who had deputised in Hansen's absence through injury and retained the role even after the club's first choice captain was fit again.

Michael Thomas scored a crucial last minute goal for Arsenal at Anfield that gave the North Londoners a 2–0 win.

The immediate aftermath, when Kenny Dalglish and the players attended the funerals and tried to show support for the grieving families took more out of me emotionally than any other experience I have gone through.

"[28] Having previously appeared for the under-23 side,[29] Hansen made his full debut for Scotland on 19 May 1979 in a British Home Championship match against Wales in front of 20,000 spectators at Ninian Park, Cardiff.

Scotland manager Jock Stein gave debuts to four Scottish players that day – George Burley, John Wark, Paul Hegarty and Hansen.

[30] Hansen's second Scotland cap came the following month on 2 June 1979 in a prestigious Saturday afternoon friendly match at Glasgow's Hampden Park against reigning World Champions Argentina.

On the hottest day in Glasgow for 30 years,[31] the 61,000 sun-drenched crowd at Hampden Park saw the South Americans beat Scotland 3–1, with an 18-year-old Diego Maradona scoring his first international goal for Argentina in a virtuoso display of skill and trickery.

An accidental collision between Hansen and central defensive partner Willie Miller allowed USSR striker Ramaz Shengelia through to score the Soviets' second goal.

[35] Ferguson, who took charge of the national team after the sudden death of Jock Stein, dropped Hansen from the squad for the 1986 World Cup in Mexico.

Hansen ruled himself out by stating that, despite his great affection for the club, he simply was not interested in coaching or management; a position he has maintained ever since Roy Evans got the job.

[10] Sky Television employed Hansen as a pundit and summariser almost as soon as he ceased playing, and soon he had established enough of a reputation as a considered observer and thinker within the game for the BBC to approach him.

Hansen is known for coining the phrase "you can't win anything with kids",[9] having made the remark following Manchester United's 3–1 defeat to Aston Villa on the opening day of the 1995–96 FA Premier League season.

The BBC received 82 complaints by the following morning while some, including Shamrock Rovers player Rohan Ricketts, criticised Hansen's choice of words on social network Twitter.

The Daily Telegraph blogger and commentator Toby Young wrote: "In his defence, Hansen could cite the fact that America's foremost civil rights group is the NAACP which stands for the National Association for the Advancement of Colored People.

"[46] Hansen issued an apology the following day, saying: "I unreservedly apologise for any offence caused – this was never my intention and I deeply regret the use of the word.

[53] Hansen was appointed Member of the Order of the British Empire (MBE) in the 2025 New Year Honours for services to Association Football and Broadcasting.