[2] In 1933, American International College president Chester McGown hired Peterson as the school's first athletic director.
[1][3] On October 13, 1939, Peterson coached American International to perhaps its greatest victory, a 7–6 upset of heavy favorites Saint Anselm at Pynchon Park.
Trailing 6–0 with 1:30 remaining, American International elected to punt, but the kicker dropped the wet ball, and was forced to run.
Future American International coach Henry Butova kicked the extra point to seal the victory.
[9] That year, he temporarily left the school to take a commission in the United States Navy as a physical education instructor during World War II.