In order to establish a competitive side in Berlin, the first team of SG Dynamo Dresden and its place in the DDR-Oberliga was transferred to SC Dynamo Berlin. The team played its first match for SC Dynamo Berlin on 21 November 1954 against BSG Rotation Babelsberg. Political factors and pressure from Erich Mielke were probably the main reasons behind the relocation. The relocation was designed to provide the capital with a team that could rival Hertha BSC, Blau-Weiß 1890 Berlin and Tennis Borussia Berlin, which were still popular in East Berlin and drew football fans to West Berlin.