BFC Dynamo saw a decline in the 1988-89 DDR-Oberliga season and finished runners-up behind SG Dynamo Dresden. The team defeated FC Karl-Marx-Stadt 1–0 in the final of the 1988–89 FDGB-Pokal and secured its third cup title. As cup winners, BFC Dynamo was set to play the DFV-Supercup against league champions SG Dynamo Dresden. Jürgen Bogs was removed as head coach after the 1988–89 season, and replaced by Helmut Jäschke, who had previously served as head coach of the reserve team. The DFV-Supercup was played on 5 August 1989 at the Stadion der Freundschaft in Cottbus. BFC Dynamo defeated SG Dynamo Dresden 4–1, with two goals scored by Thomas Doll, and won the title.