On December 19, 2006, Allen Iverson, along with Ivan McFarlin, was sent to the Denver Nuggets in exchange for guard Andre Miller, forward Joe Smith, and two first-round draft picks.

On January 11, Sixers GM Billy King announced that the Sixers and aging forward Chris Webber have agreed to a buyout of the remainder of his contract. The Sixers will be paying Webber $36 million over the next 1 1/2 seasons, which is $7 million less than he would have been paid to play. After the buyout, the Sixers waived Webber, making him a free agent. Webber signed with the Detroit Pistons shortly thereafter.

The Sixers drafted Georgia Tech Yellow Jackets SF Thaddeus Young with the 12th pick, traded with the Miami Heat for 21st pick Colorado State PF Jason Smith, traded with the Portland Trail Blazers for 42nd pick Vanderbilt SG/SF Derrick Byars, and then finally traded with the Utah Jazz for Providence PF Herbert Hill.

On December 4, 2007, the Sixers fired Billy King and replaced him with Nets GM, Ed Stefanski.

This season, the Sixers revamped their homecourt design. The logo based on their home uniforms is placed on center court, while the primary logo is placed on the right side of the baseline. The streaking ball on the left side of the court is eliminated, and the team website is placed on the sideline.

The Sixers clinched a playoff berth with a win over the Atlanta Hawks on April 4, 2008. It was their first postseason appearance since 2005, as well as the first in the post-Iverson era. However, they were eliminated by the Pistons in six games, with Detroit winning the series 4-2. Even with this elimination, many folks considered this to be a successful season, considering that the Sixers were 12 games under .500 in early February and went on to have a run that led them to the playoffs.