After the U.S. entered World War II, Lane joined the Navy and spent the next four years in the service before returning in 1946 as general manager of the Kansas City Blues, a top farm club of the New York Yankees.

Over the next seven years, he shaped the team into a contender after more than two decades of mediocrity, acquiring Baseball Hall of Famers Nellie Fox and Minnie Miñoso, and All-Stars Chico Carrasquel, Sherm Lollar and Billy Pierce, among many others.

[4] In what he subsequently referred to as "the worst trade [he] ever made,"[5] Lane sent Bill Virdon, recipient of the previous season's National League Rookie of the Year Award, to the Pirates for Bobby Del Greco and Dick Littlefield on May 17, 1956.

[6] When Lane tried to trade superstar hitter Stan Musial to the Philadelphia Phillies for pitcher Robin Roberts—both future Hall of Famers—news of the proposed transaction was leaked to the radio and Cardinals' owner August A. Busch Jr. stopped the deal.

Due to his uncertain contract status, Lane was forced out of baseball during this period, but found employment in early 1962 as general manager of the National Basketball Association's Chicago Packers.

[11] He took advantage of the rain postponement of Game 2 of the 1971 World Series on October 10 to acquire George Scott, Jim Lonborg, Ken Brett, Billy Conigliaro, Joe Lahoud and Don Pavletich in a ten-player blockbuster that also sent Tommy Harper, Marty Pattin, Lew Krausse Jr. and minor-league outfielder Pat Skrable to the Red Sox.

Yet players were not the only people involved in Lane's transactions – in 1960, during his tenure with the Indians, he dealt manager Joe Gordon in exchange for Detroit Tigers skipper Jimmy Dykes.