The 1977–78 season was Liverpool Football Club's 86th season in existence and their 16th consecutive season in the First Division. It was a season of contrasts for Liverpool as they retained the European Cup, following a 1–0 victory against Club Brugge in the final at Wembley in London, and won the European Super Cup by beating Hamburg, who included former Liverpool forward Kevin Keegan in their side, 7–1 on aggregate with a 6–0 Second Leg win at Anfield. However, in both the Football League and the Football League Cup they would end as runners-up to newly promoted Nottingham Forest managed by Brian Clough. The replay of the Football League Cup final would prove to be very controversial with a penalty that decided the match, followed by a disallowed goal when it was adjudged that Terry McDermott handled the ball.