[edit] Relationship with Sittler
Ballard's desire to control players and their salaries also put him at odds with Alan Eagleson, executive director of the NHL Players Association and a player agent whose clients included Keon's successor as captain, Darryl Sittler. Ballard had once called Sittler "the son I never had", but relations between the two took a turn for the worse with Sittler's increasing prominence in the NHLPA. Around that time, the Leafs had made it as far as the conference finals in 1978, losing to the two-time defending champions Montreal Canadiens, but Ballard was criticized for not spending the extra money to take the team over the top (see below).
In July 1979, Ballard brought his longtime friend, former Leafs coach and general manager Punch Imlach, back to the organization as general manager. Imlach was as staunchly anti-union as Ballard; during his first stint in Toronto, he had been one of Eagleson's most ardent foes. With Ballard's support, Imlach moved to dismantle the roster and undermine Sittler's influence, despite many analysts viewing the team as having a promising future. Sittler was apparently untouchable as he had a no-trade clause in his contract and, through his agent Eagleson, had insisted on $500,000 to waive it. When the Leafs traded Sittler's close friend Lanny McDonald to the moribund Colorado Rockies on December 29, 1979, a member of the Leafs anonymously told the Toronto Star that Leafs management would "do anything to get at Sittler"[10] and was bent on undermining the captain's influence on the team. Angry teammates trashed their dressing room in response, while Sittler ripped the captain's C off his sweater, later commenting that a captain had to be the go-between with players and management, and he no longer had any communication with management.[11] Ballard would liken Sittler's actions to burning the Canadian flag.[12] Eagleson called the trade "a classless act."[10]
Through the summer of 1980, Ballard insisted that Sittler would not be back with the Leafs. As Imlach was preparing to trade Sittler to the Quebec Nordiques, he had a heart attack in August and was hospitalized. Ballard used the opportunity to name himself acting general manager and hold talks with Sittler, and the two agreed that Sittler would return to the team for the 1980–81 season. Both men appeared together at a news conference described as "all smiles and buddy-buddy"[13] to announce that Sittler would be at training camp, with the C back on his sweater, reassuming the role of team captain.[13] Ballard told the press that the real battle had been between Imlach and Eagleson, and Sittler just got caught in the crossfire. Ballard also signed Börje Salming to a new contract with terms that Imlach had refused to offer.
Ballard remained as de facto general manager even when Imlach recovered. In September 1981, after Imlach had another heart attack, Ballard told the media that Imlach's poor health meant that "he's through as general manager". Imlach was never officially fired, but when he tried to return to his office in November, he found that his parking spot at Maple Leaf Gardens had been reassigned and Gerry McNamara had been made acting general manager. Imlach never returned to work and his contract was allowed to expire. Though Imlach was gone, Sittler's relationship with the Leafs worsened again in the 1981–82 season and he was traded that year to the Philadelphia Flyers.