Following a long playing career, Larry Hillman began his coaching career assisting Joe Crozier with the Calgary Cowboys in 1976-1977. The next season, Hillman succeeded Bobby Kromm as the head coach of the Winnipeg Jets, leading them to their second AVCO Cup championship that season. Hillman was dismissed late the next season as the Jets struggled with the loss of the Hot Line and the integration of the new players from the defunct Houson Aeros.