The 1997–98 NBA season was the Raptors' third season in the National Basketball Association.^[1] In the 1997 NBA draft, the Raptors selected high school basketball star Tracy McGrady with the ninth overall pick,^{[2][3][4][5][6]} and acquired second-year forward John Wallace from the New York Knicks in a three-team trade during the off-season.^[7][8][9] In November, Isiah Thomas resigned as general manager, and later took up a job as color analyst for the NBA on NBC.^{[10][11][12][13]} After a 1–2 start, the Raptors struggled posting a 17-game losing streak, leading to a dreadful 1–19 start. The team later on improved in January with a 6–8 record, including a four-game winning streak, and held an 11–36 record at the All-Star break.^[14]

At midseason, the team traded Damon Stoudamire along with Walt Williams, and Carlos Rogers to the Portland Trail Blazers in exchange for Kenny Anderson, Gary Trent and rookie guard Alvin Williams, as head coach Darrell Walker resigned after 49 games.^{[15][16][17][18]} However, Anderson refused to play for the Raptors and was dealt along with Popeye Jones, and Žan Tabak to the Boston Celtics in exchange for top draft pick Chauncey Billups and Dee Brown.^{[19][20][21][22]} The team also released Shawn Respert to free agency, where he later on signed as a free agent with the Dallas Mavericks.^[23] Under interim Butch Carter, the Raptors continued to struggle posting a 5–28 record for the remainder of the season, which included a 13-game losing streak between March and April, and finishing last place in the Central Division with a franchise worst record of 16–66.^[24]

Doug Christie averaged 16.5 points, 5.2 rebounds and 2.4 steals per game, while Wallace averaged 14.0 points and 4.5 rebounds per game, and second-year star Marcus Camby provided the team with 12.1 points, 7.4 rebounds and led the league with 3.7 blocks per game. In addition, Reggie Slater contributed 8.0 points and 3.9 rebounds per game, while McGrady provided with 7.0 points and 4.2 rebounds per game off the bench, and Miller averaged 6.3 points and rebounds per game each.^[25]

This was also the Raptors' final full season playing at the SkyDome. Following the season, Camby was traded to the New York Knicks,^{[26][27][28][29]} while Billups was traded to the Denver Nuggets,^[30][31][32] Trent signed as a free agent with the Dallas Mavericks,^[33][34][35] Oliver Miller was released to free agency, and Sharone Wright, who only played just seven games this season due to an off-season car accident, retired after four seasons in the NBA.^[36][37][38]

In February 1998, Damon Stoudamire was traded by the Raptors along with Walt Williams and Carlos Rogers to the Portland Trail Blazers, for Kenny Anderson, Alvin Williams, Gary Trent, two first-round draft choices, a second-round draft choice and an amount of money. Anderson refused to report to the team, because he did not want to play in Canada. He was then sent along with Popeye Jones and Žan Tabak to the Boston Celtics for Chauncey Billups, Dee Brown, John Thomas and Roy Rogers.