The Iron manager Nigel Adkins turned to Paterson, who was out of contract at Stoke City, when Sharp was sold back to Sheffield United.
Paterson had made just 15 appearances for the Potters, scoring once, but a six-goal haul in 15 games on loan at Grimsby Town meant he came with a growing reputation.
United were still required to pay Stoke a transfer fee for Paterson, as he was under 24, and as the two parties could not agree on a price a Football League tribunal would settle it.
He quickly adapted to life in the Championship, and scored in his debut in a Carling Cup game against Hartlepool United. He earned his first call into the senior Northern Ireland squad on the back of this form, keeping his place in their side for as long as he remained at Scunthorpe.
Unsurprisingly he had many admirers, and United turned down a £850,000 bid for him from Championship rivals Norwich City in the January transfer window. If they were to stay up they needed their main source of goals.
When relegation finally came it brought a transfer request from the forward, who claimed he had an agreement with the Iron chairman Steve Wharton that he could leave if they club went down.
Burnley had seen £400,000 and £550,000 offers rejected, but Paterson's desire to leave forced Scunthorpe's hand. They accepted an offer that saw the Clarets pay £1million up front and a further £300,000 depending on appearances. There is also a 20 per cent sell on clause.