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Bill Shankly was born in a small Ayrshire coal mining village, called Glenbuck, whose population in 1913, the year of Shankly's birth, was around 700. People born there would often move to find work in larger coal mines. As a result, Glenbuck became largely derelict and by the time Shankly's ghost writer John Roberts visited it in 1976, there were only 12 houses left, including a cottage owned by Shankly's sister, Elizabeth, whom Roberts described as "the last of the children of Glenbuck". Shankly's parents, John and Barbara, lived in one of the Auchenstilloch Cottages with their 10 children; five boys and five girls.

Shankly had a single season, 1932-33, at Carlisle United, then relatively new to the Football League and playing in the Third Division North, their reserve side playing in the North Eastern League. Shankly was recommended by a scout called Peter Carruthers who had seen him playing for Cronberry. He was invited for a month's trial and said it was the first time he had left Scotland. He was signed after just one trial match for Carlisle's reserves against Middlesbrough reserves, even though Carlisle reserves lost the match 6-0. A local newspaper report said that "Shankly played strenuously and might develop into a useful left back" but, in fact, he developed into a top-class right-half.  Shankly made his senior debut on 31 December 1932 in a 2-2 draw against Rochdale and made 16 appearances for the first team. At the end of the season, the reserves won the North Eastern League Cup, defeating Newcastle United reserves 1-0 in the final. In his 1976 autobiography, Shankly stated: "I've still got the medal".  At this stage of his career, Shankly was assessed as "a hard running, gritty right-half" whose displays brought him much praise and credit and he was "earmarked as a key young player capable of taking Carlisle on to greater things". He was paid four pounds ten shillings a week at Carlisle which he considered a good wage as the top rate at that time was eight pounds. Shankly was happy at Carlisle which was close to his home at Glenbuck and he had settled in well with almost a guarantee of first team football. When the opportunity came for him to move on, he was not convinced he wanted to leave.
Bill Shankly