He played junior hockey for the Shawinigan Cataractes from 1979 to 1981 and was chosen 166th overall by the Montreal Canadiens in the 1980 NHL Entry Draft. Penney played in the Canadiens' farm system through the 1983-84 playoffs. In those playoffs, Canadiens' coach Jacques Lemaire decided to go with the young and inexperienced Penney. He surprised everyone by starring in the playoffs, even getting three shutouts. He was traded to the Winnipeg Jets in 1986 but saw very little action. Penney retired in 1988.
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