This season saw the first reduction in the total number of teams since the
Brooklyn Americans folded following the
1941–42 season. Fearing that two teams were on the verge of folding, the league approved the merger of the financially unstable
Cleveland Barons and
Minnesota North Stars franchises, reducing the number of teams to 17. The merged team continued as the Minnesota North Stars but assumed the Barons' place in the Adams Division. This reduction was only temporary, however, as negotiations continued toward an agreement with the
World Hockey Association that would see it fold following this season, with four of its teams joining the NHL as expansion franchises for
1979–80. A
dispersal draft was then held on June 15, 1978. The merged North Stars was allowed to protect 14 players, then the five other worst teams in the previous 1977–78 season each had the option to pick one of the unprotected players. The
1978 NHL amateur draft was also held on June 15, at the
Queen Elizabeth Hotel in
Montreal,
Quebec.
Bobby Smith was selected first overall by the North Stars. For the first time since the
NHL All-Star Game became an annual tradition, it was not played. In its stead was the
1979 Challenge Cup, which saw
Soviet Union players come over to North America to play against NHL players. The Soviets won the series two games to one. ==Regular season==