Most recently, Peterson was the head coach of the University of North Carolina Wilmington Seahawks men"s basketball team He was fired by University of North Carolina Wilmington at the conclusion of the 2014 season. Peterson was the head coach of the Tennessee Volunteers basketball team for four years before being fired in 2005.
He previously coached a second stint at Appalachian State—he coached the 2009-2010 Mountaineers, as well as the 1996 to 2000 squads.
Previously, he was the men"s basketball head coach at the University of Tulsa and at Coastal Carolina University, a position he held until mid-2007, when he left the program to be executive (Director of Player Personnel) with the Charlotte Bobcats of the National Basketball Association. Peterson, a standout at Asheville High School who was named the 1981 high school player of the year in North Carolina, played basketball for Dean Smith at North Carolina where he was a roommate of Michael Jordan, who later was best man at Peterson"s wedding. He was later drafted in 1985 by the Cleveland Cavaliers in the 7th round of that year"s National Basketball Association draft, but never played professionally.
In his first stint as head coach at Appalachian State, he led the Mountaineers to the Southern Conference Tournament Championship during the 1999–2000 season. During his single season at Tulsa, 2000-2001, Peterson led the Golden Hurricane to their second National Institute of Technology championship.