Bob Hopkins, who replaced former Boston Celtics center Bill Russell as coach, was fired and Lenny Wilkens returned for a second tour of duty.
With Wilkens' experience being a key factor, the Sonics turned their season around, finishing with 47 wins and the fourth seed in the West.
In the playoffs, they defeated the Los Angeles Lakers in a three-game miniseries, then upset the top-seeded and defending champion Portland Trail Blazers (who lost center Bill Walton in the second game of the series) in six games, before a six-game win over the Denver Nuggets in the Conference Finals sent them to their first of back-to-back NBA Finals appearances.
The Washington Bullets franchise made the Finals twice before in the 1970s, but were swept on both occasions, first by the Milwaukee Bucks in 1971 when they were still in Baltimore, and then by the Cinderella Golden State Warriors in 1975.
The Bullets kept some of the personnel from that 1975 team, including All-Stars Wes Unseld and Elvin Hayes, but Dick Motta was now in his second year of coaching duty.
In the playoffs, the Bullets disposed the Atlanta Hawks in a two-game first round series, then ousted the San Antonio Spurs in six games, before making the finals again with a six-game win over the defending Eastern Conference champion Philadelphia 76ers.
From a KENS-TV Spurs broadcast in the San Antonio series after Washington took a 3–1 lead, Motta adopted the expression "The 'opera' isn't over 'til the fat lady sings" to warn Bullets fans against braggadocio.
But, the Sonics staged a comeback in front of the home crowd, led by "instant offense" guard Fred Brown.
Wes Unseld defended inside on Marvin Webster and Jack Sikma, pulled down 15 rebounds, and handed out five assists.
This work enabled Bob Dandridge to score 34 points and Elvin Hayes 25 as the Bullets evened the series, winning their first NBA Finals game following nine consecutive losses.
At the start of the final period, Dennis Johnson was elbowed hard in the ribs and left the game for a short time.
With Charles Johnson, Wright, Mitch Kupchak and Bob Dandridge in the lineup, the Bullets stormed back and took a 103–101 lead with about 3.5 minutes left in the game.
[6] Dennis Johnson, who before the 1977–78 playoffs was a relatively unknown guard from Pepperdine University, had grown into a star in this series in front of a national TV audience.
Fred Brown, who finished with 21 points off the bench, hit a short jumper, then Paul Silas got a tip-in to cut it to 101–99.
[7] After the climactic Game 7 victory, Motta celebrated with his team wearing a beer-soaked The Opera Isn't Over 'Til The Fat Lady Sings T-shirt.
Nationwide radio coverage of the 1978 NBA Finals was broadcast by Mutual, with Tony Roberts on play-by-play and Hubie Brown on color commentary.