After retiring as a player Walley spent eight years as a coach at Arsenal before joining Crystal Palace in the same capacity in 1967.[2] He became caretaker manager of Crystal Palace for six matches following the departure of Terry Venables in 1980.[3] After the appointments of Malcolm Allison and subsequently Dario Gradi, Walley continued as a coach at Crystal Palace.[2] He was later assistant manager to John Hollins at Chelsea during the mid-1980s, and reserve manager under Steve Harrison at Watford. His brother Tom played for Watford and Wales, and was a coach at Watford at the same time as Ernie.[4] Ernie Walley subsequently managed Barking between December 1983 until January 1985,[5] and later Bangor City for a short spell in 1992.
