
3rd

Round of 64
Having finished the previous season next-to-bottom of the First Division, and sunk by a misfiring attack, Stade Rennais experienced the first relegation of its history to the second tier. Moreover, in a bad place financially, Stade Rennais Université Club owed it's survival to different donations and subsidies from the Mayor of Rennes. From a sporting perspective, the Red and Blacks started the 1937/1938 season in a preliminary championship, as there were too many clubs applying to play in the Second Division. There were thus four regionalised groups, which enabled the FA to trim down the numbers, the top four from each group would be accepted into the national Second Division. Stade Rennais finished second of their group, and were thus able to join the 16-team Second Division for the 1937/1938 season. They had a good start to the campaign, quickly establishing themselves in the top half of the table. Going into Matchday 25, off the back of a run of seven matches without defeat, Rennes were in a promotion spot in the top two, but they suffered two defeats in successive matches, which saw them drop to third place. Despite finishing the season on three wins, the last of which came against leaders, Le Havre), Stade Rennais would not recover their second spot, finishing the campaign in Third, with the best defence in the Second Division, but only the seventh-ranked attack. In the French Cup, Stade Rennais suffered their first premature elimination, in the first round, when the amateurs from Saint-Brieuc beat them in the Round of 64.