During their exile from the top flight, on 10 May 1980, West Ham beat Arsenal in the FA Cup final, the last team outside the top flight 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, losing to eventual winners Dinamo Tbilisi.