He has been named the vice-chairman of Oilers Entertainment Group, a new sports entertainment company that will oversee the Oilers, among other properties.
The new company will manage the sports and entertainment properties of the Katz Group as well as Rogers Place, the new NHL arena being built in downtown Edmonton.
SEE: Photos of Rogers Place construction
Nicholson spent 16 years as president and chief executive officer of Hockey Canada, officially stepping down May 31.
"I left Hockey Canada a couple of weeks ago and I thought I had the best job in hockey in the world," Nicholson said at a press conference Friday.
"I think I'm going to really enjoy this. We're going to build this into the best job in the best sports and entertainment organization."
Canadian hockey teams excelled under his watch, winning numerous championships including seven Olympic gold medals.
Nicholson will continue to serve as vice-president of the International Ice Hockey Federation.
In addition to the Oilers, OEG owns the 2014 Memorial Cup Champion Edmonton Oil Kings (WHL), the Oklahoma City Barons (AHL) and the Bakersfield Condors (ECHL).