Later in 1938, Gateshead, a modest team languishing in the bottom division, paid £500 for him. "It's grand to be back on Tyneside," said an emotional Gallacher, when he climbed off the train. "My heart has been here ever since I left United eight years ago. I intend to spend the rest of my life with my adopted folk in Gateshead." Crowds at the Gateshead ground soared to 20,000 a week. He hit 18 league goals for the club before retiring from football with the outbreak of World War II.