Previously in charge of Buffalo's American Hockey League affiliate, the Rochester Americans, Rolston becomes the 16th head coach for the Sabres after guiding the team to a 15-11-5 record in 31 games since replacing Ruff.
The 46-year-old also spent seven seasons as head coach with USA Hockey's national team development program and led the U.S. under-18 team to gold medals at the International Ice Hockey Federation world championships in 2005, 2009 and 2011.
Buffalo finished fourth-last in the Eastern Conference with a 21-21-6 record, missing the playoffs for the second straight year and fourth time in six seasons.
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