After retiring as a player in 1998, Sutter bought the Red Deer Rebels of the Western Hockey League and served as the team's head coach and general manager for eight seasons, winning the Memorial Cup in 2001. He coached the Canadian junior team to gold medals at the 2005 and 2006 World Junior Hockey Championships, as well as winning the 2007 Super Series. Sutter compiled a 19–0–1 record in three years as the national junior team coach. He joined the New Jersey Devils as their head coach in 2007. He led the Devils to one division title in two seasons before leaving New Jersey to take on the same position in Calgary, working for brother Darryl, who was at the time, the Flames' general manager.