Sheffield United 2-1 Liverpool
Liverpool lost the first leg of the Worthington Cup semi final against Sheffield United, thanks to a double strike by highly rated midfielder, Michael Tonge.
An unchanged team was named by Houllier from Sunday's win at Man City, though there was changes on the bench, as Owen came into the squad in place of Baros.
Sheffield United began brightly, playing in their first cup semi final since the 1993 FA Cup, but the first shot of the night fell to Diouf, whose 15 yard effort after 3 minutes played was claimed comfortably by the Sheffield United 'keeper, Patrick Kenny.
Carl Asaba was on the end of the first chance which fell to the home side, though volleyed a shot well over the bar from 10 yards out, and within two minutes at the other end, Liverpool should have been ahead.
Diouf managed to get in behind the United defence, and he cut a ball back to the arriving Neil Mellor, who shot into the side netting with a couple of Blades' defenders putting him under pressure.
The game saw very little goal action over the next twenty minutes, with one shot for each side, though neither forcing the goalkeeper to work.
But the match came to life on 35 minutes, when a Danny Murphy free kick was flicked on in the area by Hyypia, and Mellor beat the 'keeper to the ball to head in the opening goal of the semi final.
Sheffield United struggled to create anything in the final stages of the half, as Liverpool lead away from home at half time for the first time since November.
El Hadji Diouf collected an early second half caution, which ruled him out of the FA Cup clash with Crystal Palace later this month, a game which Traore will also be suspended for, following his booking in the first half.
Gerard Houllier's first change of the night was to bring Emile Heskey back into the first team after a few games out due to injury, with Vladimir Smicer leaving the field.
Diouf forced Kenny into a excellent save at full stretch after getting a header on goal from a corner, and Chris Kirkland bravely rushed off his line as Wayne Allison looked set to get his foot to a bouncing ball in the area, and the big keeper did just enough to make it difficult for the Blades' forward as the ball was eventually hooked onto the roof of the net.
Michael Owen came on for Neil Mellor on 70 minutes, but it was another Michael who soon put his name on the scoresheet, and who looked set to be more likely to put his name in the headlines as the game reached the final quarter hour.
Michael Tonge, who has previously been scouted by Liverpool this season, netted the equaliser with 13 minutes to go, passing the ball through Kirkland's legs from close range, after being set up by Stuart McCall.
And as Liverpool went forward desperately seeking a winner, Tonge struck again for the home team, just five minutes after scoring his first of the night.
From a corner swung in front he right hand side, Tonge found the ball at his feet just outside the Liverpool area, and with Carragher diving in front of him to block any first time shot, Tonge instead opted to take his time, and the 19-year old remained cool as he fired a shot into Chris Kirkland's near post putting Sheffield United in the lead.
Danny Murphy had a couple of shots from outside the area, but couldn't keep either of them on target as Sheffield United put plenty of men behind the ball, content with holding onto the one goal lead.
It was a famous win for Sheffield United, though it was a similar sitution to that of Liverpool's treble winning season, when they lost 2-1 to First Division Crystal Palace. The Reds won the return leg 5-0 on that occasion, and will be hoping for a similar reaction to tonight's result.
The second leg will take place at Anfield on January 21.
View match pictures from this game!
