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The Pittsburgh Steelers started in the 70's... It came into the NHL when Vancouver Canucks head coach Roger Neilsen "surrendered" to the referees during what he deemed to be an unfairly called game. He took a white towel, and waited it on the top of Stan Smyl's hockey stick to surrender.

Other than those two teams, everyone else is pretty much just copying...

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Q: Who started spinning towels at sporting events?
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