Born in the small northern Manitoban mining town of Flin Flon, Clarke began playing organized hockey when he was eight years old. Around the time he was 12 or 13 years old, he learned he had type 1 diabetes. Even though he progressed into a highly touted prospect playing for the Flin Flon Bombers, leading the league in which the Bombers played in scoring in each of his last three years of junior hockey, NHL teams feared Clarke would never be able to play in the NHL because of his diabetes. Bombers coach Pat Ginnell took Clarke to the Mayo Clinic in Minnesota following the 1967-68 season and the doctors concluded that as long as he took care of himself he could play professionally.

Following his retirement, Clarke's first stint as Flyers general manager lasted six seasons and included two trips to the Stanley Cup Finals in 1985 and 1987. After making the playoffs in each of his first five seasons in the front office, the Flyers fell off during the 1989-90 season and missed the playoffs, resulting in his firing by Flyers President Jay Snider.  Clarke moved on to the Minnesota North Stars and spent two seasons as the North Stars general manager, one of which saw a surprise run to the Finals in 1991.  Leaving Minnesota, Clarke returned to Philadelphia to assume the role of Senior Vice President during the 1992-93 season, and served as a mentor for young phenom Eric Lindros during his first season. Clarke moved on shortly after and took the general manager position with the expansion Florida Panthers, a team which set the expansion team record for wins and points during a season in 1993-94. He returned to the role of Flyers general manager prior to the 1994-95 season (Florida was compensated with cash and Philadelphia's second-round draft pick in the 1994 NHL Entry Draft), and he rebuilt the team into a Cup contender. During his second tenure as general manager of the Flyers, the team made the playoffs 11 seasons in a row but reached the Finals once (1997). Following a poor start to the 2006-07 season, Clarke resigned citing a possible burnout and a lack of desire. Clarke returned to the franchise on December 4, 2006, and was named Senior Vice President.

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