Following his retirement from playing in 1952, Oatey remained the coach of Norwood until 1956. In 1957, Oatey moved to West Adelaide where he coached until 1960, reaching the finals each year but never winning the premiership. Not involved in coaching at any team in 1961, Oatey saw the Bloods win the SANFL premiership, convincing him to return to the league. He went to Sturt, coaching there from 1962 to 1982, and leading the league team to seven SANFL Premierships (a record at the time) including the famous five in a row from 1966 to 1970.