The rebuilding of Liverpool F.C. continued into 1970-71 as many of the side who came in the previous season, began to make their presence felt with the club. Although they had finished fifth in the football league Ray Clemence, Larry Lloyd and Alec Lindsay all beginning to emerge in their second season of first team action. Two players who would figure well into the seventies would be Steve Heighway who joined from Skelmersdale United in May 1970 and became a regular in his full season with the club.
John Toshack was bought from Cardiff City in November 1970 for £110,000, and became an instant hero by scoring in the Merseyside derby versus Everton F.C. a few weeks later. The rebuilding of the side from the 1960s was beginning to take shape and although they finished fifth in the First Division it seemed that Bill Shankly would be emerging with a team that would be challenging for major trophies in the next few years. One signing which took place a few days before they finished runners-up in the FA Cup Final was the signing of Kevin Keegan from Scunthorpe United for £35,000.
However the team showed that the future would look promising by losing in the FA Cup Final to Arsenal and losing on aggregate one-nil in the Semi-Finals to Leeds united who end up being the eventual and last winners of the Fairs Cup.