Liverpool surrendered the European Cup without scoring in either leg of their first-round tie against Nottingham Forest. The goalless draw at Anfield on 27 September 1978 left Bob Paisley's side beaten 2–0 on aggregate and ended their pursuit of a third consecutive title.
Garry Birtles and Colin Barrett had established Forest's advantage at the City Ground a fortnight earlier. Liverpool now needed at least two goals, but Peter Shilton and the defence in front of him protected the lead through another 90 minutes.
Paisley kept the starting eleven from the first leg. Forest replaced Barrett with Frank Clark at left-back and defended in depth, with Larry Lloyd and Kenny Burns dealing with Liverpool's crosses. Sustained pressure brought few clear opportunities.
The best first-half opening came when Kenny Dalglish headed towards goal and Viv Anderson cleared off the line. Shilton had been beaten, but Liverpool still reached the interval without reducing the deficit.
Dalglish twice tested the goalkeeper after the break. Shilton stretched to save a low shot and later tipped another effort over the bar. Paisley brought on David Fairclough and David Johnson for Jimmy Case and Terry McDermott, but the extra forwards could not force a breakthrough. An attendance of 51,679 saw Forest complete a second clean sheet against the holders.
Liverpool's campaign was over after two matches. Forest advanced to face AEK Athens and eventually won the competition, beating Malmö in the final. The side that had taken Liverpool's English championship in 1978 would succeed them as European champions in 1979.