Halewood-born McMahon started his career at Everton, playing for them as a teenager after appearing at Goodison Park as a ball boy.

He made his league debut on 16 August 1980 in the 3–1 defeat to Sunderland at Roker Park, and he went on to be voted the supporters player of the year by the end of the 1980/81 season.

McMahon agreed to join Liverpool on 12 September 1985 for £350,000 thus becoming the first signing to be made by new manager Kenny Dalglish, and filling the void left by Graeme Souness over a year earlier.

However, he was more fortunate than the other players left out by Dalglish, as McMahon was given the substitute's role and ended up with a winners' medal when Liverpool won 3–1, though he did not get on to the pitch.

[5] The following year, McMahon this time started at Wembley when Liverpool contested the League Cup final against Arsenal.

Memorable strikes included a 30-yard shot against Manchester United and the opener in a crucial Merseyside derby against Everton, although Liverpool only won the latter of those two games.

[7] McMahon clashed with John Fashanu and Dennis Wise frequently throughout the match, although Liverpool lost on the day.

McMahon was voted second place in the PFA Player Of the Year Awards, the winner being his colleague John Barnes.

In Souness's book, The Management Years he recounted that several players who were over 30, including McMahon, were looking for bigger contracts at the end of their careers and were prepared to move elsewhere if their terms weren't met.

[9] In 1993, McMahon was featured in Vinnie Jones's Soccer's Hard Men video, in which Jones talks about his adoration and respect for other "hard men" from the past and present including Souness, Bryan Robson, Mike Bailey, Norman Hunter, Jack Charlton, Peter Storey, Ron Harris and Nobby Stiles.

[11] McMahon played in 87 league matches for the Sky Blues before an offer to become player-manager of Swindon Town tempted him away from Manchester.

There had been widespread clamouring in the press for manager Bobby Robson to select him, and indeed ITV commentator Brian Moore rapped a verse to that effect on the Cup final song ("Well Steve McMahon sure can rap, it's about time he had an England cap; so come on Bobby Robson, he's your man; 'cause if anyone can, Macca can!")

with the last expression repeated in a scratch mix manner to emulate Melle Mel's rap which praised Chaka Khan on her 1984 hit, I Feel For You.

[12] In the second half of the first group game against Ireland, with England leading 1–0, McMahon failed to control the ball on the edge of the English 18 yard box.

Immediately, Republic of Ireland player Kevin Sheedy pounced and drove a left foot shot beyond Peter Shilton in the English goal.

[15] As transfer deadline day approached, rumours were rife that leading goalscorer, Jan Åge Fjørtoft, would be leaving the club – most sources quoting a fee of between £3m and £4m.

This was followed by a 5–2 defeat at Portsmouth – and when Watford then won 4–1 at the County Ground, the fans held an on-pitch protest, sitting in the centre circle at the end of the match, demonstrating that both McMahon and Hunt should resign.

[18] It was not to be, however: in May they were relegated to Division Three, but McMahon took them to promotion via the play-offs the following season and also won two Football League Trophies in three years.

At the time of his departure, McMahon was the fifth-longest-serving Blackpool manager in terms of Football League games in charge.

He was signed in early 2005 as the manager of Perth Glory FC for the inaugural Australian A-League Men season.

He has also been responsible for recruiting other former English football stars such as Les Ferdinand and fellow ex-Liverpool players, Ian Rush and Steve McManaman.

They faced tough competitions and also went to Thailand and Spain to play friendly matches with BC Tero and Real Madrid Second Team.

At the end of the season, they faced the All Stars team featuring former Singapore football players, Des Walker, as well as former Liverpool legends Robbie Fowler and Steve Harkness.

McMahon has explained that Profitable Group had ended its interest in buying the club due to a lack of "communication and response" from Bill Kenwright.