Hornets Hype took a look at the Hornets' tradition (established by George Shinn) of pre-game prayer. The whole story is definitely worth a read.
New Orleans and Oklahoma City are the only two teams in the NBA that incorporate such routines into their pre-game production (and obviously, the roots of Oklahoma City's practice may well lie in the time Shinn spent there). Technically, there is certainly nothing illegal about the custom. But obviously religion is a highly divisive issue, and the debate is sure to be far more nuanced than simply parsing out what's "legal" and what isn't.
One of the site rules of At the Hive is 'no discussion of religion,' but I suppose this, like the state government issue before it, is an issue inextricably tied with the team. So, without getting into what religion is and is not good for, what's your take on it?