After finishing second in the premiership the previous season, much was expected of the Red’s, they however did not get off to a flying start to the 2002-03 season. An early exit against first division outfit, Crystal palace, in the FA Cup highlighted the problems Liverpool were facing as they were also appearing in mid table of the premiership, however their poor form did not stop them producing in the league cup and they met Man UTD in the final and won the tie 2-0. From there on Liverpools form beagn to improve and they finished off strongly in fifth position.
The 2003-04 season produced a significant improvement. There league form was more consistent and most importantly they got the season off to a good start. They had a decent run in the UEFA Cup; however they were eliminated in the quarter finals. The summer of 2004 was a transitional period for the Reds. Gerrard Houllier left the managerial post for Spain and Rafael Benitez was the man who replaced him. The summer of 2004 saw the departure of Michael Owen to Real Madrid, Liverpool in turn strengthened their squad with the addition of Xabi Alonso and Morientes. Liverpool were far from perfect at the start of the season, finding themselves in mid table by the end of November. Worse followed in January as Liverpool met Burnley in the FA Cup third round, the Reds suffered a humiliating defeat to their division one counterparts and it proved to be worrying times for Liverpool.
It was a great champion’s league run which kept their season flowing with hope and in turn they found that their league form improved. Liverpool found themselves in the champion’s league final of 2005 against AC Milan of Italy and after coming back from three goals behind; they managed to level the score line and hauled the match into penalties. Liverpool won the shoot out and were the champions of Europe. The 2005-06 season saw a significant improvement in league form by the Reds; they bought Peter Crouch from Southampton which late on in the season proved to be worthwhile. Steven Gerrard was in inspirational form through out the season and helped Liverpool to third place in the premiership. They finished their champions league campaign in the second round, however there season finished off in style as they reached the FA Cup final, their opponents being West ham. Liverpool won the FA Cup after a thrilling 3-3 draw during open play, they won the penalty shoot out.