Liverpool led through Ian Rush but lost the League Cup final 2–1 to Arsenal at Wembley on 5 April 1987. Charlie Nicholas scored both goals for George Graham’s side, securing Arsenal’s first success in the competition during his first season as manager.
Jan Mølby helped Liverpool control the opening stages. His pass released Steve McMahon on the right, and McMahon drew the defence towards him before finding Rush, who side-footed Liverpool ahead in the 23rd minute.
Arsenal equalised seven minutes later. Alan Hansen’s foul on Niall Quinn gave Paul Davis a free-kick near the penalty area. His effort struck the wall; in the scramble that followed, Nicholas hit a post before converting Viv Anderson’s low delivery.
The Times’s contemporary report described Davis and Steve Williams taking control of midfield as Liverpool’s influence diminished. Nicholas missed another chance from Anderson’s cross, and the scores remained level into the final quarter-hour.
Both managers changed their attacks. Kenny Dalglish replaced Paul Walsh, while Graham sent on Perry Groves for Quinn. Groves provided the decisive intervention: he went past Gary Gillespie and delivered low towards Nicholas. The striker’s attempt took a deflection off Ronnie Whelan and beat Bruce Grobbelaar with less than ten minutes remaining.
Kenny Sansom lifted the trophy for Arsenal. Liverpool, who had beaten them in both league meetings that season, had been unable to repeat the result in the final.