Costello was recruited to become the first paid staff to lead the
Canadian Amateur Hockey Association (CAHA) in 1979, when the membership voted to have a full-time president instead of a volunteer executive committee. He succeeded
Gord Renwick as CAHA president. When he originally accepted the job, he understood it to be a five-year commitment, but that evolved into a lifetime career. The CAHA wanted to send the best team possible but also feared that by not sending a team, the IIHF would turn to the rival
Hockey Canada instead. The program also included creating under–17, and
under–18 programs to feed into the juniors (under–20), and inviting eligible Canadian players from other leagues such as the
USHL, or
NCAA hockey. Teams were concerned about losing their best players in the middle of the season, younger players for regional development tournaments, and potential injuries. The
Canadian Hockey League was also assured of participating in the Program of Excellence policy committee. Sabetzki asked Costello if the CAHA would stage a women's world championship, and he agreed as long as it could be hosted close to CAHA offices in Ottawa, to keep expenses down. Costello oversaw the formation of the
Canada women's national ice hockey team, and the inaugural
1990 IIHF Women's World Championship, which led to the development of women's hockey in Canada. ==Hockey Canada president==