The 1996–97 Lobos returned all their principal players, while adding freshman Lamont Long, who would become a starter by mid-season. The team entered the year #18 and would remain ranked throughout the next three seasons. The Lobos started 11–1, losing at Texas Tech but beating #11 Arizona and rising to #11 themselves. The WAC had expanded to 16 teams in the off-season, and eight WAC teams won at least 20 games. The Lobos lost three tough road games but beat #4 Utah in The Pit, pushing them to a #9 ranking – they went 18–0 at home for the season. Smith led in scoring for the third straight season, averaging 17.5 a game, while Shields scored 15.5, and Thomas added 14 points and seven rebounds a game. New Mexico later lost at Utah in a blowout, then lost a close game to the #3 Utes in the WAC tournament. The Lobos were ranked #11 and received a three-seed in the NCAA tournament, their best seed ever. Against Old Dominion in the first round, the Lobos struggled with three-point shooting and turned to their inside game. Thomas had 15 points and eight rebounds, sealing the win with a pair of late free throws, while Long added 14 points and nine boards. They then faced six-seed Louisville in a closely contested game that went down to the final play. The Lobos forced a turnover, down 64–63, but their set play broke down and Gibson missed an unbalanced, driving shot, ending the Lobo season at 25–8. Bliss would identify the loss as a particular disappointment, believing that the Lobos were the better team. Smith led with 16 points and seven rebounds in his final game as a Lobo. He was again named All-WAC and finished as the leading scorer in Lobo history, with 1,993 points, and the leader in field goals made, having started every game of his career. Smith was chosen by the Miami Heat with the 26th pick in the first round of the 1997 NBA draft, playing five seasons in the NBA and several more in Europe.