[4] They had won their group in the group-stage, then defeated Athlone Town (3–2), and St Patrick's Athletic (3–1) to reach the 1989 final.

Minutes later Derry's Paul Doolin was shown a straight red card by referee John Spillane, after a clash with Dundalk's James Coll.

Spillane had also made a number of controversial decisions in Dundalk's defeat of Derry in the 1988 FAI Cup Final.

Dundalk equalised a minute before half-time when Paul Newe fired a loose ball from a corner to the net.

But in the resulting penalty shoot-out Derry missed two spot-kicks, while Dundalk scored four to take the victory and the League Cup for the fourth time.