Palermo enjoyed a great start and quickly entered into the race for a UEFA Cup spot, ending the first half of the season in fifth place, only three points behind fourth-placed Inter. For a while the team appeared also capable to fight for a place in the next Champions' League, but failed in do so and Udinese eventually gained the last of the four available spots. Palermo ended in sixth place with 53 points, nine behind Udinese and eight behind fifth-placed Sampdoria. After the final match, Guidolin tended his resignations, and Luigi Delneri was quickly appointed at his place.
In the Coppa Italia tournament, the rosanero reached the round of 16 after having defeated Salernitana 3-2 on aggregate. The return match notably marked the only two goals by Argentine striker Ernesto Farías, who failed to impress in the Italian top league and was sold to River Plate in the January transfer window. In order to replace him, Davide Possanzini was signed by from AlbinoLeffe. Palermo then went on to be defeated 4-1 on aggregate by AC Milan.