Charlton board ironically decided to name Mullery as Bailey's successor. Charlton finished the 1981–82 season in 13th place, and Walsh scored 15 goals in total. He performed well against divisional champions Luton Town, giving captain Mal Donaghy a difficult afternoon, which was enough to win him a move to his next club. Luton Town Walsh was signed by Luton Town manager David Pleat for £400,000 plus Steve White in July 1982. Pleat had an attacking philosophy which gave Walsh the freedom to express himself and score goals. In only his second game for Luton at Kenilworth Road he scored a hat-trick in a 5–3 win over Notts County, the second goal of which was voted Goal of the Season as he beat numerous defenders before chipping the goalkeeper. On the final day of the 1982–83 season Luton needed to beat Manchester City at Maine Road to remain in the First Division, and a late Radomir Antić volley secured the "Hatters" a 1–0 win and a place in the top-flight. After the game Pleat celebrated by running down the touchline in a scene that became an iconic moment of 1980s football in England. Luton enjoyed an excellent start to the 1983–84 season, and were in third place on Boxing day. On 10 December, Walsh scored a hat-trick in a 4–2 win over Stoke City at the Victoria Ground. However a run of just three wins in 24 games saw Luton go from title contenders to relegation candidates, as well as exit the FA Cup in a 4–3 defeat to rivals Watford at Vicarage Road. Luton ended the campaign in 16th place, and Walsh was voted as PFA Young Player of the Year, ahead of candidates such as Ian Rush, Nigel Callaghan and John Barnes. Liverpool Liverpool manager Joe Fagan bought Walsh for a £700,000 fee in May 1984. Walsh turned down an approach from Italian Serie A side Como to join Liverpool. He joined Liverpool in time to travel with the players to Rome to see them win the 1984 European Cup Final. He made his debut as a substitute on 18 August 1984 in the 1–0 Charity Shield defeat to derby rivals Everton. With Ian Rush injured at the start of the 1984–85 season, Walsh partnered Kenny Dalglish up front, and he scored just 14 seconds into his Anfield debut on 27 August in a 3–0 win over West Ham