Magdeburg managed to remain in the league, finishing twelfth, and averaging 4,500 spectators, but in June 2002 the club had to go into receivership. This led to the club's relegation to tier IV, and almost all players left the club and 1. FC Magdeburg had to manage the next season with players from their youth department and their reserves. This young team finished tenth in the Oberliga Nordost-Süd and won the Saxony-Anhalt-Cup for a fifth time. Despite this negative development, average attendance stayed at the same level.