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English teams were banned from Europe and the Football League started a new cup for sides in the top two leagues. Nottingham Forest had already won the League Cup, while Everton were awaiting their FA Cup final. Both Everton and Nottingham Forest had been exempt from the first two rounds of the competition, due to their high league finish in the 1987–88 season, with Forest finishing third and the Toffees fourth.
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Everton took the lead through Tony Cottee, before being pegged back from a goal by Garry Parker. Graeme Sharp restored Everton's lead after the break, before Parker sent the game into extra-time with an equaliser. In extra-time, Lee Chapman put Nottingham Forest ahead for the first time in the match. Cottee scored his second to level the match at 3–3. Chapman scored his second, three minutes from time, to win the trophy for Forest.
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