Liverpool lost 3–1 at Manchester United on New Year’s Day 1989 after conceding three goals in seven minutes. John Barnes had put them ahead in the 70th minute; by the 77th, Brian McClair, Mark Hughes and Russell Beardsmore had all scored at the other end.
United had created the greater threat before the goals arrived. Hughes struck a post with a turning volley, and Mike Hooper saved Mark Robins’s follow-up. Liverpool, without the injured Ian Rush, struggled to create clear chances.
Their breakthrough came from a mistake by substitute Paul McGrath. Steve McMahon intercepted his underhit pass, Peter Beardsley carried the move forward and Barnes cut inside before scoring with his right foot.
McClair equalised almost immediately with a volley. Liverpool still threatened, Jim Leighton saving from McMahon, but United went ahead in the 75th minute when Hughes scored after Steve Nicol’s attempted clearance broke down.
Two minutes later, Lee Sharpe’s run and cross brought Beardsmore the third goal.
The defeat left them fifth in the First Division, nine points behind Arsenal and Norwich City. Liverpool had 28 points from 19 matches; Arsenal had played one fewer. United moved to sixth, a point behind Kenny Dalglish’s side.