After being made redundant by Swindon Town, he became Peter Reid's Chief Scout at Sunderland. In 2003, he had a brief spell as manager of Southport, where, despite being in the top half of the table upon his arrival, they suffered relegation out of the Conference, only slipping into the relegation places on the last day of the season after a defeat away at Stevenage Borough. After a successful start to the season, Southport went on a long win less streak which saw them fall from top spot to the brink of not qualifying for the newly formed Conference North league, this was something deemed unthinkable for the Southport board who left with no decision but to sack Walsh and replace him with Liam Watson in an attempt to secure qualification. In 2004, Walsh was then asked back to Swindon Town as Andy King's assistant, but and decided to retire from the game a year later, and is now running a restaurant in Javea, Spain.