After the fall of communism in late 1989, the club struggled to keep afloat. Financial struggles and a constant loss of talented players lead to an unavoidable outcome. At the end of the 1997–98 season the club relegated to the second division, after more than 25 years at the top flight. One year later, the club came very close to a demotion to the third division, however, with the help of a young investor, Vasile Şiman corroborated with massive rejuvenation of the squad, Sportul Studenţesc turned things around and the team remained in the second league.