The soccer match was played in front of 57,431 spectators at RFK Memorial Stadium in Washington, D.C. D.C. United were defending champions and finished atop the Eastern Conference and the overall league standings despite being strained by runs in multiple competitions.

[7] MLS continued to use the modified version of the sport's rules that it adopted for the 1996 season, including a penalty shootout from 35 yards (32 m) to decide tied matches (for which the winners earned one point) and a countdown clock that stopped during dead plays.

[12] Inaugural season champions D.C. United retained most of their players and made few changes during the offseason, trading midfielder Shawn Medved to the San Jose Clash and acquiring defender Carlos Llamosa in the supplemental draft.

[14][15] D.C. went on a preseason tour that included matches in Japan and Hong Kong, earning a 6–2 win–loss record, and returned to open the season against MLS Cup opponents Los Angeles Galaxy with a shootout win.

[20] Despite losing Bolivian players Marco Etcheverry and Jaime Moreno to the national team for six weeks, D.C. won their next five matches but lost 6–1 to the Kansas City Wizards on June 21, ending a 22-match unbeaten streak in regulation time.

[15][25] The team made further changes to their goalkeepers, as Simpson had undergone two knee surgeries and backup Jeff Causey was signed by the New England Revolution; in their place, Scott Garlick and rookie Tom Presthus were rotated between matches as starters.

[31] The team continued to heavily rotate lineups and rested eight starting players in the second of a home-and-away series against the Tampa Bay Mutiny, winning 5–1 despite losing the first match with most of their regular starters.

[35] In the away leg at Foxboro Stadium, D.C. were held to a 1–1 draw in regulation time, with a goal for Richie Williams canceled out by Joe-Max Moore's penalty kick in the 72nd minute.

The two teams played in a seven-round shootout that ended 4–3 in United's favor after a series of saves from goalkeepers Walter Zenga and Tom Presthus that was broken up by defender Carlos Llamosa's conversion.

In the first leg, played without Etcheverry who was on national team duty, United took a three-goal half-time lead that was reduced by two for a 3–2 victory after a second half surge in pressure and chances from the Crew.

[37] D.C. clinched their second MLS Cup appearance with a 1–0 win at Ohio Stadium in Columbus, with Díaz Arce scoring the lone goal in the 47th minute from within the six-yard (5.5 m) box.

[38] The Colorado Rapids finished last overall in MLS during the league's inaugural season, with a 11–21 record under head coach Bob Houghton, who was replaced in the offseason by Glenn Myernick.

[39] Myernick and new general manager Dan Counce implemented a possession-oriented style and overhauled the Rapids roster by signing eleven new players, including trades to acquire defender Peter Vermes and midfielders Paul Bravo and Adrián Paz.

[40][41] After a short preseason tour in Mexico and Florida, the Rapids opened the season without forward Jean Harbor and several defenders who were either injured or called up to national team duty, winning only twice in their first seven matches.

[54] Colorado won 1–0 in the first leg, played in Dallas, with a header in the 42nd minute from defender Sean Henderson; the Burn had several chances to equalize, including a free kick in the final five seconds that hit the post, but were unable to capitalize.

[62] The MLS Cup final kicked off at 3:30 p.m. with an announced sellout crowd of 57,431 spectators at RFK Memorial Stadium, setting a new attendance record for a single playoff match.

[64][65] D.C. controlled the opening minutes, taking their first shot within 25 seconds, but Colorado used counterattacks to find chances and force goalkeeper Scott Garlick to make three saves and a foul that earned him a yellow card.

[69] They attempted to find an equalizer early in the second half and had two chances through David Patiño that were not finished after missing a through ball and later hitting teammate Steve Rammel.

[72] Colorado scored a consolation goal in the 75th minute from substitute Adrián Paz, who struck the ball from a tight angle in the penalty area on an assist from Patiño.

[77] The announced attendance of 57,431 came within 600 spectators of breaking the overall record for largest sporting event at RFK Memorial Stadium, held by the United States–Portugal match during the 1996 Summer Olympics.