The two sides had met once before in European competition, when they contested the 1976 UEFA Cup Final, which Liverpool won 4–3 on aggregate.

As reigning champions, Liverpool received a bye in the first round, which meant that Club Brugge played two matches more to reach the final.

All but one of Liverpool's matches were comfortable victories and they won each round with an aggregate score at least two goals to the good.

Dresden won the second leg 2–1 at their home ground, Glücksgas Stadium, giving Liverpool a 6–3 win on aggregate.

[4] Liverpool's opponents in the semi-finals were Borussia Mönchengladbach, the team they had beaten to win the European Cup the previous year.

[6] Liverpool were the reigning champions and were aiming to become the first British team to win successive European Cups.

[7] Brugge were the first Belgian team to reach the final of the European Cup and thus were aiming to become the first to win the trophy.

As the final was held in England, at Wembley, Liverpool were clear favourites to retain the European Cup.

Tommy Smith, who had scored in the previous season's final, was out after dropping a pick-axe on his foot and breaking a toe.

He had strained knee ligaments during a match against Leicester City, an injury that ruled him out for the rest of the season.

Brugge held back, using tight marking and the offside trap to restrict Liverpool's attacking threat.

Ray Kennedy volleyed across the face of the goal, and Jimmy Case took a free kick that needed to be punched away by Brugge goalkeeper Birger Jensen.

Brugge's first significant chance came a few minutes afterwards, when a cross-field pass by René Vandereycken reached Jan Sørensen on the right-hand side of the pitch.

[9] Two minutes after Heighway's introduction, Kenny Dalglish received the ball in the Brugge penalty area from a Graeme Souness pass and placed his shot over a diving Jensen to give Liverpool a 1–0 lead.

His shot was blocked by Clemence, and a goal-line clearance by Phil Thompson prevented Brugge from equalising.

[8] The match remained at 1–0 and Liverpool won their second consecutive European Cup, becoming the first British team to retain the trophy.