The 1986-87 season saw the return to Arsenal of their former player George Graham as manager. Graham had been appointed just after the end of the previous season as successor to Don Howe who had resigned in late March. He had been a member of Arsenal's double winning team in 1971, but Arsenal had gone since 1979 without winning a major trophy, finishing seventh in the two seasons leading up to Graham's arrival and finishing as low as 10th in 1983. Arsenal started the season well and were top of the league by Christmas, but a 10-match winless run went against their title hopes in the second half of the season and they eventually finished fourth, with Everton finishing champions for the second time in three seasons. Compensation for the failed title bid came in the form of the club's first ever Football League Cup victory, which came with a 2-1 win over Liverpool in the Wembley final. Charlie Nicholas scored both of Arsenal's goals.

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