After the war a separate football competition emerged in the Soviet-occupied eastern half of the country. Sportgruppe Babelsberg was formed in 1946 out of the former memberships of VfL and SpVgg Potsdam. The Potsdamers established a separate side known as SG Karl Marx Babelsberg in 1948. SG Babelsberg then went on to capture a division title in the Landesliga Brandenburg-West in 1949. On 11 July that year SG became part of Betriebbsportgemeinschaft Märkische Volksstimme Babelsberg which was itself formed only months earlier on 26 May 1949. The new club joined the top-flight eastern competition known as the DDR-Oberliga for the 1949–50 season.
