James Balagizi joined the Reds from Manchester City as an U-11 player and the attacking midfielder signed his first professional contract in September 2020. In 2021/22 Balagizi was an unused substitute in two domestic cup ties and was loaned to Crawley Town of League Two for 2022/23. He made 16 appearances and scored three goals for Crawley before returning injured to Liverpool in January. He joined Wigan Athletic on a season-long loan deal for 2023/24 after signing a new contract with Liverpool. It was a disappointing spell however that ended at the start of the January transfer window after just seven appearances.

Due a hamstring injury sustained in December 2023, Balagizi was expected to remain at Liverpool for the second half of the season for rehab and games with the Under 21's. However, he returned to fitness sooner than expected and joined Kilmarnock on loan on 24 January. He struggled to make an impact however, with all of his seven appearances being as a substitute,. He remained at Liverpool's Academy for 2024/25 but it was a frustrating injury hit campaign which saw him limited to just five appearances, in which he did manage two goals. Balagizi spent the first part of the 2025/26 season on loan at Forest Green in the National League, but his spell was disrupted by a hamstring injury that ruled him out from late October onwards. The midfielder was released by the club in the summer of 2026.