Due to the American-led boycott of the 1980 Summer Olympics, the United States and other nations withdrew from the tournament.

Automatic qualifications were granted to the host country for both events, plus the winning team at the 1978 FIBA World Championship and the gold medal winners at the 1976 Summer Olympics.

Meanwhile, qualification in Group C was closely contested between Italy, Cuba and Australia, which ended up being decided by a third tiebreaker in favor of the first two teams.

The host nation failed to compete for the gold in spite of finishing the preliminary round undefeated, due to losses against the other two group leaders Yugoslavia and especially Italy, since the result from that match served as tiebreaker, giving the latter a passport to the gold medal match.

Results from Yugoslavia vs. Spain, Italy vs. Cuba and Soviet Union vs. Brazil were carried over from the preliminary round.