Liverpudlians may well play in it! (3)
I believe the answer is:
red
'it' is the definition.
The definition suggests a singular noun which matches the answer.
I don't understand the rest of the clue.
Can you help me to learn more?
(Other definitions for red that I've seen before include "'If you see it, perhaps you're angry (3)'" , "Florid" , "Blushing" , "Stop light" , "Colour of garnets" .)