Liverpool has a rich and complex social identity, infused by various cultural influences and evolving migration patterns. Its status was recognised with the 2008 award of European Capital of Culture, reflecting Liverpool’s architectural, musical and sporting heritage, together with recent regeneration. The recent redevelopments are considered notable given the economic recession, increases in unemployment and hooliganism, and the racially-aggravated riots Merseyside experienced in the 1980s. Elements of Liverpool’s population have a long association with racist and violent identities and behaviours, and there is evidence that such characteristics continue to permeate the social fabric of the city. The murders of Anthony Walker and Rhys Jones in 2005 and 2007 respectively serve as contemporary examples. This paper will explore youth culture in two traditionally, currently and infamously troubled areas, namely Croxteth in the north of the city and Toxteth in the south. Drawing on observational data as well as interviews with teenage males, this research accesses opinion pertaining to the construction and expression of contemporary identity relative to community and ethnicity. It also examines youth engagement in racist and anti-social behaviour in both communities, and the extent to which sport serves as an integrative enclave in Liverpool.