McDonald announced his retirement as a player on August 28, 1989, stating in a press conference that he made the determination before the 1988–89 season began that it would be his last. He also revealed that he had received an offer from another, unnamed, team to play in 1989–90 but felt that it was the right time to end his career. The Flames made McDonald their vice president in charge of corporate and community affairs. He chose the corporate position partly due to a fascination with the business world, and partly to remain close to his family as a role in hockey operations would have necessitated more travel. His interest in business grew following his trade to Calgary as he was featured in numerous commercials and signed endorsements throughout southern Alberta. He had also previously served as a vice president of the NHLPA in the early 1980s. McDonald changed roles in 1992 as he was named the team's Vice President of Marketing. After serving four years in that position, McDonald became the Vice President of Corporate Development in 1996.