A gaming system and method which forms, tracks and maintains one or more groups or teams. The gaming system and method also maintains at least one team progressive award. At any designated point in time, each group or team includes one or more players, wherein as a player plays one or more games at one or more gaming devices, the player accumulates or builds up equity in their current team or group. Upon a determination to provide a team progressive award to a player of a designated team, each eligible player actively associated with the designated team (i.e., each player actively belonging to the team) is provided a portion of the team progressive award. Each player's provided portion of the team progressive award is based on that player's relative accumulated equity in the designated team compared to each other eligible player's accumulated equity in the designated team.