Dutton was named the coach of the Americans for the 1935–36 NHL season, and in doing so became the second player-coach in NHL history. Under his leadership, the Americans finished third in the Canadian Division with a 16–25–7 record and qualified for the postseason. The Americans then went on to defeat the Black Hawks 7–5 in a two-game, total-goal series to face the Maple Leafs in the league semi-final series. Dutton was unable to play parts of the series against Toronto due to a hip injury, and the Americans lost the best-of-three series two games to one. Dutton retired as a player following the season and turned his focus to coaching full-time.