Ending his playing career, Bauer became coach, general manager and president of the Dutchmen in 1952. He coached the team to two OHA senior championships and Allan Cup victories: 1952–53 and 1954–55. As the top senior team in the nation, the Dutchmen were sent to Italy to represent Canada at the 1956 Winter Olympics. Bauer was pleased with the way his team adapted to European rules and the Dutchmen were expected to bring home the gold medal. However, the team was shocked by the American entry, a 4–1 loss. Though they still had a chance at gold due to the round robin format of the tournament, the Dutchmen were defeated by the Soviet Union – at the time a relatively unknown and emerging hockey power – by a 2–0 score despite outshooting the Soviets 23–9. Canada was relegated to the bronze medal, at the time the worst finish in the nation's Olympic hockey history.