Growing up, Derlago excelled at multiple sports, including golf, tennis, baseball, and hockey. It was hockey that garnered the most success and attention for the young Derlago, as he rewrote the WCJHL record books as a member of the Brandon Wheat Kings in the 1970s. His standout junior career led to his being selected fourth overall by the Vancouver Canucks in the 1978 NHL Entry Draft. Derlago currently resides in Concord, Ontario, and operates a Chrysler dealership.