On July 12, 2006, Sutter stepped down as head coach of the Flames to focus on his role as general manager of the club. He has said that he found it difficult to handle the jobs of both head coach and general manager of the Flames. Sutter compiled a 107–73–15–15 record in parts of three seasons behind the Calgary bench. The Flames promoted Jim Playfair who served as assistant coach for the previous two and a half seasons as Sutter's replacement, but after a first-round loss to Detroit in 2006–07 Sutter looked for a new head coach.