Liverpool's 2–0 defeat by Everton at Anfield on 22 February 1986 left them eight points behind the First Division leaders with twelve league matches remaining. Kevin Ratcliffe and Gary Lineker scored late in a derby that had been goalless for more than seventy minutes.
Liverpool were without Kenny Dalglish and Paul Walsh as players. Jan Mølby operated further forward in support of Ian Rush, but Everton created the greater threat before half-time. Bruce Grobbelaar saved a fierce early volley from Kevin Richardson.
Both managers changed their sides at the interval. Kevin MacDonald replaced Mølby, with Craig Johnston moving into attack, while Everton introduced Alan Harper for Paul Bracewell.
Grobbelaar subsequently denied Trevor Steven, and Neville Southall saved at Johnston's feet. Then Ratcliffe's speculative shot from distance escaped beneath Grobbelaar and crossed the line. The goalkeeper's error gave Everton the lead around a quarter of an hour from time.
Liverpool briefly threatened an equaliser when Rush rounded Southall and sent his shot towards the unguarded goal. Pat van den Hauwe cleared off the line. Lineker then got behind Liverpool's defence to finish past the advancing Grobbelaar and settle the match.
Everton had 62 points from thirty games; Liverpool had 54 from the same number and remained third, behind Manchester United. A home win would have reduced the gap to their neighbours to two points.