Liverpool returned to the top of the First Division by beating Arsenal 2–1 at Anfield on 26 November 1989. Six months after Arsenal’s title-winning visit, Steve McMahon and John Barnes scored against the defending champions.
Ray Houghton hit a post in the opening minute after Ian Rush exploited David O’Leary’s slip. Liverpool then lost Barry Venison, who suffered concussion in a collision with Glenn Hysén. Peter Beardsley replaced him after nine minutes; Venison was taken to hospital.
John Lukic saved Barnes’s penalty, awarded for Lee Dixon’s handball, but Liverpool went ahead on the half-hour. Rush laid the ball off for McMahon to drive home.
Houghton cleared Alan Smith’s volley off the line early in the second half. Barnes then doubled Liverpool’s lead in the 65th minute. Tony Adams fouled Rush, and Barnes curled the free-kick around Arsenal’s wall and beyond Lukic.
Smith reduced the deficit with eleven minutes left after confusion in Liverpool’s defence. Alan Hansen’s intervention prevented Michael Thomas from finding a late equaliser.
Liverpool, Arsenal, Aston Villa and Chelsea now shared 27 points. Liverpool led on goal difference and had played one match fewer than the other three.