Schäfer's Esteghlal were eliminated in the quarterfinals of the AFC Champions League after a 5–3 aggregate loss to Al Sadd on 17 September 2018. They were also eliminated from the Hazfi Cup on 1 November, reaching the Round of 16 stage, after a penalty shootout defeat to Saipa after a 2–2 draw. On 29 April 2019, Schäfer was suspended until the end of the season two days after Esteghlal's loss to Padideh in the league and replaced by his assistant Farhad Majidi.