The 1990–91 season was the 99th season in Liverpool F.C.'s existence, and their 29th consecutive year in the top flight. The season saw the club unable to defend its league title and did not reclaim the title for another thirty years until the 2019–20 season.
Manager Kenny Dalglish resigned on 22 February 1991 following a dramatic 4–4 draw with local rivals Everton, citing personal reasons for his decision. With caretaker Ronnie Moran in charge, Liverpool failed to regain the lead of the First Division from Arsenal, who finished as champions having lost just one game all season. However, the club was still able to secure another top-two finish for a record 10th season in succession. Graeme Souness was appointed manager on 16 April for the five last matches of the season, resulting in three wins and two defeats.
Captain Alan Hansen, out of action for a nearly a year, announced his retirement as a player not long after Dalglish's resignation.
The season had started very well for the Reds, who as defending league champions won their first eight league games, including a 4–0 victory over Manchester United at Anfield, and enjoyed a 15-match unbeaten start in the league.
It was also the final season at Anfield for striker Peter Beardsley, who enjoyed a fine start to his fourth season at the club but was then dropped in favour of new signing David Speedie halfway through the season. Both players left the club in the close season; Speedie to Blackburn Rovers and Beardsley to local rivals Everton. Also on their way out of Anfield that summer were defenders Gary Gillespie and Steve Staunton to Celtic and Aston Villa respectively. The close season saw Liverpool pay a national record £2.9million for Derby County striker Dean Saunders, who had been one of the First Division's top scorers in 1990–91 despite his team being relegated in bottom place. A further £2.5million went to the East Midlanders for England defender Mark Wright. An outlay of £1.25million also went on midfielder Mark Walters, who followed Souness to Anfield from Rangers.
Just weeks before his resignation, Dalglish invested for the future with a move for 17-year-old AFC Bournemouth midfielder Jamie Redknapp, while fellow teenage midfielder Steve McManaman made his first two senior appearances during the season.
Events of the season
August
Liverpool's defence of their record 18th top division league title began on 25 August 1990 at Bramall Lane, where they defeated newly promoted Sheffield United 3–1. A visit to Wembley a week earlier for the FA Charity Shield had seen Liverpool share the honour with FA Cup holders Manchester United in a 1–1 draw.
September
September ended with Liverpool top of the First Division, having won all of their seven opening league games, including a 3–2 win at Goodison Park in the Merseyside derby in which Peter Beardsley scored twice, and even more impressively a 4–0 demolition of Manchester United at Anfield in which Beardsley hit a hat-trick. Beardsley ended the month as the First Division's top goalscorer with seven goals in as many games.
October
Liverpool's winning start to the season reached an eighth successive game as they triumphed 2–0 at home to struggling Derby County, and in the next game they dropped points for the first time when Norwich City held them to a 1–1 draw at Carrow Road. The month ended in disappointment when Manchester United dumped them out of the Football League Cup with a 3–1 defeat at Old Trafford.
November
Peter Beardsley's excellent form continued as he reached the 10-goal mark in the First Division on 10 November, finding the net in a 4–0 home win over Luton Town. It was also a fine month for Ian Rush, who was on the scoresheet twice against both Luton Town and Tottenham Hotspur. Liverpool remained comfortably in the lead at the top of the First Division as November ended.
December
Liverpool's unbeaten start to the season ended after 14 games when they crashed 3–0 to their nearest challengers Arsenal at Highbury on 2 December, but their lead of the First Division remained intact. The month ended with a second defeat at Crystal Palace, slowly emerging as outsiders in the title race, but also included wins over Sheffield United and Southampton.
January
The new year brought two significant signings for Liverpool, in the shape of experienced striker David Speedie from Coventry City and promising 17-year-old midfielder Jamie Redknapp from AFC Bournemouth. There were just three league games for the Reds this month, starting with a 3–0 win over Leeds United at Anfield on New Year's Day, followed by draws against Aston Villa at Wimbledon.