The Dublin-born midfielder was the first player to have been capped internationally whilst he was on-loan at the club from bitter rivals Coventry City. He joined in January 1983 with the aim of helping City to promotion, something they completed successfully.

Daly created many of the goals for City in the latter half of that season, forming a good relationship with the strikers. His stay at City came to an end following promotion, however, and it was a surprise that manager Gordon Milne, didn't take up the option of signing him for the club's subsequent First Division campaign. Milne had originally signed Daly for Coventry so it was expected that he'd remain a Fox beyond his successful loan spell.

He'd started his career at Manchester United and tasted the rare taste of defeat, for United at least, during Tommy Docherty's spell as boss. He fell out with the Red Devils manager, however, at United and then at Derby County.

Daly enjoyed promotion two years after his time as Fox, this time with Birmingham City and continued at a lower level with Shrewsbury Town, Stoke City and Doncaster Rovers before trying his hand as player-coach and then player-manager with Telford United.