Hatfield is a graduate of the University of Arkansas, where he starred at defensive back for the 1964 team that won a share of the national championship.

Hatfield began his college head coaching career at the United States Air Force Academy from 1979 to 1983.

He gradually rebuilt a program that had struggled through most of the 1970s and laid the foundation for its success in the 1980s and early 1990s under his offensive coordinator and successor, Fisher DeBerry.

As good as Hatfield's last two Razorback teams had been, he lost several recruits after 1987 when rival coaches claimed he was in Broyles' doghouse.

Although the Owls were bowl-eligible in those three winning seasons, they weren't invited to a bowl in part because of the school's small alumni and fan base.

In his first year, despite a losing overall record, he managed to lead the Owls to a share of the Southwest Conference title and a victory over the rival Texas Longhorns on national TV.

A story in the November 1, 2002, issue of the Chronicle of Higher Education quoted Hatfield saying that he "would not necessarily kick a player off the team for being gay, he probably would think hard about it.

One of the last few remaining proponents of the conservative triple-option offense in college football, Hatfield compiled a 168–140–4 record as a head coach.