This period began not so good for the team, without achieving so poor results as the last decade, but financial support continued to decline.
An important point was in 2004, when the bankruptcy of the team was declared, then to be auctioned off and reborn as a Sport Public Limited Company (SADP according chilean law), and bought by other leaders with more business experience, mostly members of the Belén 2000 Foundation. Next, the results did not improve, and even the team had to go 2 times to playoffs for keeping the category (2006 and 2009).
The exception was the 2008 season, when the team qualified to the final match against Colo Colo after the playoffs, in which he was defeated 3-1 but opposing enough resistance despite the difference in team budgets. It was important when in the first match of the final, Club Deportivo Palestino could tie 1-1 Colo-Colo with 9 players on the field, as Felipe Nuñez (goalkeeper) and Roberto Bishara (defender) had been sent off.
The little experience of the new leaders was clearly noticed when these did not ensure the renovation of at least 5 important players in this team, including all the defense, which ended up going to other teams.
This made the team much more despicable after the great season of 2008, which was reflected directly when in 2009 the team had a terrible campaign, being very close to the relegation to the Chilean First B Division, being saved miraculously in an heart-stopping relegation playoffs against San Marcos Of Arica. In Arica, Palestino comfortably won 2-0, but in the second leg, the team speculated on the result, suffering 2 goals by San Marcos, finishing 2-0 on the 90 minutes, and forcing a definition by penalties, which won Club Deportivo Palestino by 4-2.