Upon starting the new professional basketball league, the ABA looked at placing teams where college basketball did well, and this included Louisville, Kentucky, where the Colonels were born. The Colonels had an ownership shift within their first season, as Don Regan who paid $30,000 to start the team sold it to Joseph Gregory, Mamie Gregory and William C.

Boone. The Gregorys were a bit eccentric and used publicity stunts to draw attention to their team.

One of them was to publically name their dog Ziggy as the team's owner. Ziggy who was a prize-winning Brussels Griffon was included in the team's first logo and watched games in his own front row seat, while attending league meetings.

They also targeted local players, signing Kentucky star Louie Dampier and Darel Carrier of Western Kentucky. Coached by John Givens, the Colonels wearing an eye catching green uniform got off to a slow start losing a home and home series to the Indiana Pacers.

They would win just five of their first 17 games, before Givens was replaced by Gene Rhodes. The Colonels would show improvement under Rhodes, as they played over .

500 the rest of the season, and finished at 36-42 finishing tied with the New Jersey Americans for fourth place. The Colonels and Americans were set to play a one game playoff for a spot in the playoffs, but the Americans were unable to find a playable arena and were forced to forfeit.

In the playoffs the Colonels would play solid basketball, but fall short as they were beaten by the Minnesota Muskies in a best of five series. In the decisive fifth game the Colonels would lose on the road 114-108 as the two teams alternated wins the entire series.