He had been working as a bricklayer and playing for nothing at Pontefract Collieries for five years before he was spotted by Derby County scout Ron Jukes, who recommended him to manager Arthur Cox.

After a well-placed finish in his first season, Penney guided Doncaster back into the Football League with victory in the 2003 play-off final.

Following receiving the sack from Bristol Rovers, Stuart Campbell was put in charge for the game against Tranmere, in which a Chris Lines goal sealed a 1–0 win.

[citation needed] He was reported as being furious after being overlooked for the Grimsby Town managerial job when Rob Scott and Paul Hurst were appointed on 22 March 2011.

[citation needed] As of 13 May 2013, he is reported to be interested in a coaching role at Southend United, as newly appointed manager Phil Brown seeks to improve the quality of back-room staff at the club.