During their exile from the top flight, on 10 May 1980 West Ham beat Arsenal in the FA Cup final, the last lower league side to do so. In their 1981 promotion season, Lyall also led the Hammers to the final of the League Cup – where they drew 1–1 against Liverpool, before losing the replay 2–1, having led early in the match. They also reached the quarter-finals of the European Cup Winners' Cup in the same year.