Following a playing career which included becoming the top goal scorer at Everton and playing in the 1992 Football League Trophy final with Stoke City, Heath began his managerial career as player-coach at Burnley in March 1996. In 1999 he became manager at Sheffield United, before acting as caretaker manager twice at Coventry City.
In February 2008 Heath was appointed manager of US team Austin. In 2010 Austin moved to Florida and was renamed Orlando City, playing in the USL PRO Division.
Orlando City joined the MLS for the 2015 season.