The Alley Cats were announced as an expansion franchise for Indianapolis. Later, however, the team moved to Anderson, where they played at O. C. Lewis Gymnasium, on the campus of Anderson University. On the court, the Alley Cats were one of the most successful franchises in ABA history, posting a 27–4 record. Their winning percentage is only topped by that of the 2005–06 Utah Snowbears, who were 25-1. The Alley Cats were coached by Greg Graham. Despite this level of success, the second seed Alley Cats were upset by the 13th seed Strong Island Sound. Off the court, the Alley Cats struggled. Crowds hovered around 400-500 fans. The team was also featured in a Slam story.