Liverpool's wait for a first League Cup continued after two goals in the closing minutes of extra time left the 1981 final level. Alan Kennedy put them ahead at Wembley on 14 March, only for Ray Stewart's penalty to secure a 1–1 draw for West Ham United.
This was Liverpool's second final in the competition. Their first, against Nottingham Forest in 1978, had also required a replay, which Forest won. West Ham, managed by John Lyall, were still a Second Division side, having won the FA Cup the previous May.
Neither team scored in the regulation 90 minutes. Ray Kennedy captained Liverpool, with Colin Irwin alongside Alan Hansen in central defence. Jimmy Case replaced Steve Heighway during the second half, but the breakthrough did not arrive until the 118th minute.
Alan Kennedy's shot brought a disputed lead. Sammy Lee lay in an offside position; referee Clive Thomas allowed the goal. Lee was in front of West Ham goalkeeper Phil Parkes when Kennedy scored.
West Ham then won a penalty after Terry McDermott handled on the goal-line. Stewart beat Ray Clemence in the 120th minute, bringing the sides level before the crowd of 100,000.
The trophy would be decided at Villa Park on 1 April. Liverpool won that replay 2–1 to take the League Cup for the first time, but at Wembley Stewart had ensured that Kennedy's late goal would not settle the final.