Mike Smith got him fired. He would constantly be in Shank's ear, manipulating the situation behind the scenes, even implying that Fergie had early onset dementia at one point. Ferguson would never forgive Smith for the remainder of his life. Mike Smith then was the interm GM, but convinced Shankerow to let him become the full time GM.
We all know how that worked out. Smith drafted fairly well initially in 1989 and 1990. However, after that it was a disaster. 25 year old Sergei Bautin in the 1st round? We could have picked him in the 5th round, as their was no interest in him. Aaron Ward at #5 overall in a stacked 1991 Draft, and Mats Lindgren in 1993 didn't help.
On top of that, Smith was determined to pick Russians, since they "were cheaper to afford." Then some of his trades were head shakers. He drove Hawerchuk out of town, and told him during the 80s, that if he were GM, he would have chosen Bobby Carpenter in 1981. Smith also drove Housley out of Winnipeg, after the two nearly came to blows at a Jets Christmas party in 1992. The return on Housley was poor. He traded Stu Barnes for a journeyman. He traded Kris Draper for $1. He benched Bob Essensa, when he was a Vezina candidate in 1991-92, due to contact disagreements in the playoffs, for Rick Tabaracci, Essensa never recovered and lost his confidence.
I recall The Hockey News stating in the fall of 1991, ranking the prospects on all teams. #1 was Winnipeg, #2 was Detroit. If the Jets had kept their prospects going into the mid 90s, I am convinced they would have been contenders, whether they were in Winnipeg or Phoenix. By the time Smith was given the pink slip in late January 1994, the Jets were dead last in the Western Conference.