Born in London but brought up in Glasgow, Paterson was on the books of both Rangers and Queen's Park as an amateur, whilst training as a doctor.
[3][2] With World War I in full effect, he joined the London Scottish Regiment and served as a medical officer, winning the Military Cross for his bravery in action in France in 1917.
[2][4] After the war ended, Paterson was posted to a Scottish hospital and played one further season with Rangers in 1919–20 (making a surprise but successful return despite being overweight and untrained), winning the championship for a second time.
[2] An anecdote by the Times columnist Brian Glanville recounted how once, when given a bunch of daffodils by a girl in the crowd for one match, Paterson played on the wing with them in his hand for several minutes before finding a place to put them.
[6][8] He retired from football in the summer of 1924 to concentrate on his medical practice, only to make a surprise return to the Arsenal side two years later after being persuaded by Herbert Chapman.