In 1982 McCarthy was back on the inter-county scene, this time as the trainer of the Cork senior hurling team. Under McCarthy's training regime Cork marched through the provincial championship and trounced Waterford in the final by 5–31 to 3–6. This victory allowed Cork to advance to the All-Ireland final seven weeks later where they were firm favourites to take the title. The game did not go Cork's way as two goals by Kilkenny's Christy Heffernan in a forty-second spell was followed by a third goal by Ger Fennelly. At the full-time whistle the final score was 3–18 to 1–15. McCarthy quit from the management team after this defeat in protest over his lack of input into the team selection.