The 1997-98 NBA season was the Warriors' 52nd season in the NBA and 36th in the San Francisco Bay Area. The Warriors got a new logo, new uniforms, and moved into their new arena known as The Arena in Oakland. During the offseason, the Warriors acquired Erick Dampier from the Indiana Pacers and Brian Shaw from the Orlando Magic. Early into the season, they traded B.J. Armstrong to the Charlotte Hornets for Muggsy Bogues and Tony Delk. In early December, Latrell Sprewell choked new head coach P.J. Carlesimo during practice and was suspended for the rest of the season, which was 68 games.

Midway through the season, the Warriors traded Shaw along with Joe Smith to the Philadelphia 76ers for Jim Jackson and Clarence Weatherspoon, while acquiring Jason Caffey from the Chicago Bulls. The Warriors struggled and finished sixth in the Pacific Division with an awful 19–63 record. Following the season, Sprewell was traded to the New York Knicks, Jackson signed as a free agent with the Portland Trail Blazers, and Weatherspoon signed with the Miami Heat.