In November 2019, during his second season as head coach of the Flames, Peters, 58, announced his resignation. Akim Aliu said that Peters “used the N-bomb multiple times against me in the dressing room in my rookie year because he didn’t like my choice of music.” Aliu played for Peters in 2009–10 with the Rockford IceHogs, the Chicago Blackhawks’ AHL affiliate.

..Sources tell ESPN that even though the incident happened 13 years ago and Aliu revealed it 4 years ago, Peters just attempted to apologize to Aliu last week via a third party—ostensibly in preparation for this employment possibility.

He responded to the third party on X, saying something along the lines of, “I wonder why he wants to apologize now. Being the youngest player on the team, I was leading the team in scoring at the time of the occurrence. Upon calling me the “N” word, he didn’t offer an apology; instead, he went farther and sent me to the East Coast League. I experienced a very gloomy period during the entire undertaking. Every day, he would chastise and humiliate me in front of the entire squad. To be honest, he would still be coaching in the NHL if I had never said anything. Second chances are great, but only if they are sincere.”

Peters returned to coaching in the Russian Kontinental Hockey League for two seasons, concluding in 2021–2022, following his resignation from the Flames. His most recent position was executive with the Alberta Junior Hockey League’s Grande Prairie Storm.

He was formerly employed by the Spokane Chiefs in the WHL from 1996 to 2002 as an assistant coach, then from 2005 to 2008 as head coach. For one season in 2004–05, he served as the University of Lethbridge’s head coach. From 2014 until 2018, Peters led the Carolina Hurricanes as their head coach.

Additional information on Peters’ behavior as a coach surfaced following Aliu’s disclosure, including claims that, when coaching the Hurricanes, he kicked and punched players. Rod Brind’Amour, the coach of Carolina and a staff assistant to Peters, attested to the event.