signing of Emlyn Hughes, who went on to captain Liverpool to victory in the European Cup. Otherwise, he did not significantly change the team until the 1969–70 season when Liverpool finished fifth in the league championship, a long way behind the winners, their local rivals Everton. Shankly was characteristically defiant whenever Everton got the better of Liverpool and, although he liked and respected everyone connected with Everton, would always talk up Liverpool at Everton's expense. Typical of this was his joke about the city having two great football teams – Liverpool and Liverpool reserves. In the 1969–70 FA Cup quarter final, Liverpool played against struggling Second Division side Watford at Vicarage Road and lost 1–0 after a very poor performance. The Liverpool site records that the defeat signalled the end for St John, Hunt, Byrne, Yeats and Lawrence; the incomers included Ray Clemence, Alec Lindsay, Larry Lloyd, John Toshack, Brian Hall and Steve Heighway. Apart from Hall who graduated through the reserves, they were all signed from clubs in lower divisions or even, in the case of Heighway, from non-league football. Adding the new players to Tommy Smith, Ian Callaghan, Chris Lawler and Emlyn Hughes, Shankly formed the nucleus of a second great team which went on to dominate English and European football in the 1970s. Many of the new players came to Liverpool because of a new scouting system created by Shankly in 1967 and placed under the control of new chief scout Geoff Twentyman, who had played for Shankly at Carlisle and had then spent several seasons at Liverpool, retiring shortly before Shankly's appointment. According to Stephen Kelly, hiring Twentyman as chief scout was "perhaps Shankly's finest signing ever". It was through Twentyman that Liverpool found the new players and, after Shankly retired, Twentyman gave sterling service to Bob Paisley and Joe Fagan by finding players including Phil Neal, Alan Hansen and Ian Rush. As always, Shankly kept things simple and Twentyman was told to look for a prospect's basic qualities which were the abilities to pass the ball and move into position to receive a pass. Shankly also wanted Twentyman to check the player's personality and ensure he had the right attitude for a professional footballer. Above all, said Twentyman, "he wanted to know if the lad had the heart to play for Liverpool". Although Shankly sometimes paid large transfer fees he was loath to do so