Joe Fagan, who at the age of 63 became Liverpool manager after Bob Paisley's retirement, was the club's second manager to be promoted from the coaching staff into the manager's seat. He remained in charge for just two seasons before handing in his retirement, but his first season (1983-84) saw Liverpool set some of the most impressive records in English football. They won their fourth successive League Cup and their third successive League Championship as well as winning the European Cup for the fourth time in eight seasons, thanks to the efforts of Fagan and his high quality squad which was mostly made up of players from the Bob Paisley era. A significant breakthrough star in the Liverpool team was young striker Ian Rush, who had been signed from Chester in 1980 and after a couple of seasons in the reserves had broken into the first team and established himself as a prolific goalscorer. Captain Alan Hansen had some of the finest leadership skills in European football. Zimbabweian goalkeeper Bruce Grobelaar was capable of pulling off some of the most impressive saves from opposition players' shots.

Joe Fagan's second and final seasons as Liverpool manager had a traumatic ending. Liverpool lost out on the league title to neighbours Everton - with four matches to spare. They reached the European Cup final to face Italian champions Juventus at the Heysel Stadium in Brussels, Belgium. But before kick-off, violence between Liverpool and Juventus supporters resulted in the death of 39 (mostly Italian) supporters who were crushed to death by charging Liverpool supporters. The sequel to the tragedy was a 5-year ban on English clubs in European competition, with a 6-year ban on Liverpool.

Fagan retired after the Heysel Disaster and handed over the reins to Liverpool striker Kenny Dalglish, who was given the role of player-manager.

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