The club has its roots in the student team from the Catholic Capuchin school in Nuevo París, which began playing in 1908.

The club took on the name Liverpool as there were many cultural links between the two areas; the majority of coal ships arriving in Montevideo came from the English port.

They lost to Peñarol in the semi-finals 1–0 in extra time, due to a 119th minute goal by former Uruguay international Abel Hernández.

Note: Flags indicate national team as defined under FIFA eligibility rules; some limited exceptions apply.

Liverpool FC had a basketball team until the 1990s, playing in the stadium that still exists behind the north tribune of Estadio Belvedere.