He made his debut in 1978, managing one game with the Yankees between Billy Martin's and Bob Lemon's first tours as skipper in the Bronx. In 1980, he returned from Florida State to become a full-time manager of the Yankees, taking them to the AL Eastern Division championship with a 103–59 record but losing three consecutive games to the Kansas City Royals in the playoffs; he was the fourth manager to win 100 games in his first full season as a manager.