Terry McDermott was born in Kirkby in December 1951. As a youngster he played for Bury for three seasons, turning professional in October 1969. He signed for Newcastle United in February 1973 for £22,000. It was while playing for Newcastle against Liverpool in the 1974 FA Cup Final, which Liverpool won 3:0, that he attracted attention. Six months later he was bought by the new Liverpool manager Bob Paisley for £170,000. He initially struggled to establish himself but was called in to strengthen the teams chase for the treble in 1977.