During the 1978–79 season, with the Leafs struggling to make the playoffs, Ballard fired the team's popular head coach, Roger Neilson, against the wishes of the players. Two days later, Ballard asked Neilson to return, but with a paper bag over his head so as to conceal his identity. Neilson did return, without the paper bag. After the season, where the Maple Leafs were swept in the quarterfinals by the Canadiens, Ballard fired general manager Jim Gregory, replacing him with his predecessor, Punch Imlach. Gregory learned of the news when he received a call from an NHL executive offering him the directorship of the NHL Central Scouting Bureau, unbeknownst to him that Ballard had fired him.