KPMG; Liverpool FC On The Verge Of Administration After Massive Rise In Debt

The season that just keeps kicking gave Liverpool and it's many fans the worst news imaginable after it emerged that the club have sunk deeper into debt . Yesterday's financial report from Kop Holdings revealed a record loss of £54.9 million over the course of the last season meaning that the clubs total debt now stands at £472.5 million.

Accounts for the club's holding company for the year ending in July 2009 show spiralling interest payments of £40m, wages breaking the £100m-a-season barrier, a record loss of £54.9m and an increase in the club's debt of £51.5m.

At the end of last season, after a record profit of £10 million, Liverpool's debt stood at £350m. Urgent negotiations with RBS and a refinancing of the loan reduced the deficit to £237 million, and the British Government owned bank are now expected to come back and seek their money.

Liverpool now stand £351m (net) in the red. Some £233m of that is owed to the British government-owned RBS and the US investment bank Wachovia, while another £144.4m is owed to Hicks and Gillett's parent company, Kop Cayman.

KPMG were brought in as financial auditors to survey the wreckage on show at the Anfield based club.
They found that Liverpool's debt had grown but, just as alarming, also found that Kop Holdings were also in debt for £42.6 million.

KPMG had warned Kop Football Ltd of the "material uncertainty" of their product. In other words, should Liverpool fail to bring the EPL trophy or the Champions League trophy home in the 2009/10, then the debt would increase substantially, as there would not be any monies available to pay off their debt.

With the current findings we can see that that is exactly what has happened to the once great club.

Liverpool have until the end of July to pay RBS and Wachovia their debt, but this looks increasingly unlikely. Already ahead of the curve, the EPL and UEFA summoned new Chairman Martin Broughton to their headquarters to discuss Liverpool's participation in in their respective tournaments next year.

Their greatest fear being that the now Government owned bank will have no where near the level of sympathy for the club that they had last year. RBS restructured their core business after the EU allowed to company to redesign itself after the biggest tax payer bail out in Europe during the financial crisis, some £100 billion.

The EU’s top competition enforcer, Neelie Kroes, warned that if the bank failed to meet 2013 targets to restore healthy, natural order to its balance sheet, her successor Joaquin Almunia would not hesitate to take fresh action.

The fact that the goalposts have now shifted for RBS means that the bank will almost definitely come looking for Liverpool to repay their debt. There is no sympathy for football clubs who spend beyond their means in the current climate and Liverpool will do well to garner support from political parties because their debt is essentially tax payer money.

Broughton has been quick to talk of the proposed £81 million four year sponsorship deal with Standard Charter and how it will help to reduce the debt. However, it would now seem that the level of sponsorship depends upon Liverpool's success during that period.

One theory on Broughton's role thar has begun to surface is that his appointment to the role of Chairman is only window dressing to appease RBS, to make it look as if the club are actively looking to reduce their debts, but are in actual fact threading water with no serious buyers on the horizon.

This would seem to go with the EPL's recent talks with Broughton about their commitment to meet every fixture next season.

"I expect to be chairman until we sell, so a matter of months,” Broughton said. “There’s no fixed price, there’s no agreed price — it’s a willing buyer, willing seller trade. We have willing sellers and there are willing buyers out there — that will determine the price," which all sounds a little bit desperate.

With the club now losing £110,000 a day through interest alone it looks as if Broughton, RBS, and the UK Government will have much to discuss over the next two months.

Royal Bank of Scotland and Wachovia have been forcing Tom Hicks and George Gillett Jr to move Liverpool’s borrowings away from them and on to Hicks' Cayman Islands-listed parent company, Kop Cayman.

Many fans rejoiced last year when Liverpool appeared to reduce their bank loan from £350 million to £290 million, but that was only because their offshore parent company increased its loan to the club by £86.2 million to £144.4 million. That loan, on which Liverpool has to pay 10 per cent interest, is likely to have increased over the last 12 months, explaining these new devastating figures.

Only this week Rafael Benitez eventually agreed to meet Martin Broughton about the Spaniard's future at the club. There has been a huge amount of speculation about his future role at the club, with stories emanating from Italy every day with new links to Juventus.

Benitez has played a polital chess game with Hicks and Gillett in the corridors of power at Anfield and he has become part of the fabric at the club with his people in virtually every position of power regarding the football side of the club.

He has called upon the owners to lavish him with money, or he will leave. He has told them not to sell Fernando Torres or Steven Gerrard, or he will leave. Rafa knows the club lies on the edge of a financial precipice and has made demands that he knows sound impossible given the level of debt.

During his six years at the club he has spent some £210 million on 49 players whilst bringing in some £125 million for 80 players.

With the news that Rafa is now saying he needs at least six new players to challenge for fourth it would seem that Rafa has spent quite poorly over his time in charge. To say he needs six players for a decent team after six years in charge in nothing short of Benitez admitting wasting Liverpool's money.

The biggest rise however has come in the wages bracket at the club,where Benitez has almost doubled the clubs wage bill since taking over.

2004- £66m, 2005- £65m, 2006- £68m, 2007- £75m, 2008- £79m, 2009 - £101m (£453m total)

For the second year running KPMG have given a brutal audit on all that is wrong with Liverpool FC. Citing "material uncertainty" yet again...

"These conditions indicate the existence of a material uncertainty which may cast doubt on the parent company's ability to continue as a going concern," it said.

Liverpool are on the verge of becoming the next Leeds, the EPL think so, UEFA think so, and KPMG know so. The next two months are vital for the club.

Challenging for the title is gone, keeping Benitez at the club looks less and less likely every day, Fernando Torres has intimated that he wants to leave English football, and Steven Gerrard has just endured his worst ever season in a red shirt.

Liverpool will not earn Champions League money next season, they will not challenge for the league title, their best players could leave, and their manager could go to Italy.

Next year couldn't be any worse than this one, could it?

Chelsea All But Win The EPL Title at Liverpool, Where To Now For Rafael Benitez?

After beating Stoke City 7-0 last week, Chelsea strolled to an even easier win today by triumphing 2-0 over a sterile Liverpool side at Anfield. In the run up to the game many pundits had questioned if the Reds would roll over and have their bellies tickled, well they did that, and more.

Manchester United vs. Liverpool: EPL Destiny on the Line for Both Clubs

Manchester United and Liverpool meet at Old Trafford this Sunday in a game that will almost certainly define their seasons.

If United loses, they will lose ground in the title race, while a loss for Liverpool will increase the mounting pressure on their beleaguered manager, Rafael Benitez.



Ferguson the Wily Manager

For many reasons, it is probably the wrong time for Liverpool to be traveling to the white-hot cauldron of Old Trafford. Having dispatched AC Milan 4-0 with childlike ease last Wednesday, Fulham then walked into the lion's den—and were duly sent packing with a 3-0 drubbing.

In short, United are on song—and they are very much the team you do not want to travel to at this stage of the season. One of the most vital elements of Alex Ferguson's coaching acumen is his uncanny ability to get his team to peak as we enter the business end of the league.

His team has stepped up a gear during the last couple of weeks—since Everton beat them 3-1—and not since 2002 have they managed to score as many goals in one season: 70 in 30 games. And you have to go all the way back to January to find the last goal they conceded at home.

Wayne Rooney has been firing on all cylinders since the start of the season, and he has carried the team through games when it looked as if this title challenge was going to slip away before it really started.

Much to Ferguson's credit, other players have begun to share in the burden Rooney has carried for so long. Antonio Valencia, despite a quiet start to his Red Devils career, has been brilliant since November.

Paul Scholes still defies Father Time and produces performances that players half his age would die for, and Dimitar Berbatov is finally beginning to give regular quality performances.

If he can keep this up, United's attack will be simply frightening as the end of the season draws in.

Park Ji-Sung has continued his selfless existence in the United midfield—and given his recent form and phenomenal honesty on the pitch, it is almost impossible to see him out of the side to face Liverpool this weekend.



United's Predicted Starting Lineup

Edwin Van Der Sar is guaranteed to start in goal. Since his return to the United starting lineup, they have managed to keep five clean sheets in eight games—no small coincidence.

Patrice Evra and Nemanja Vidic will also start—and it will be very interesting to see how the giant Serbian stands up to the power and pace of one Fernando Torres, who always seems to give him a torrid time. Rio Ferdinand should partner Vidic at the back, so the only real question is who Fergie will start at right full.

Given the options, it will either be Gary Neville or Rafael. Despite Neville having a field day against Ronaldinho, who managed to make the United man look 21 again, he should not play. His legs are gone at this level, and the pace his protege will provide could be key to United shackling Torres.

The next big question is whether Ferguson will start with four or five in midfield. Again, the system Benitez has always employed dictates that the Scot has to match him man- for-man—and for that reason, I see United going 4-5-1, which means Berbatov will start on the bench.

Valencia, Park, Fletcher, and Carrick will all start—be it in a 4-4-2 or 4-5-1—so the only question remains for midfield: Scholes or Nani?

The importance of the game would suggest that Ferguson will go with tried and trusted over flair and unpredictability—with Scholes getting the nod over Nani.

That leaves Rooney as the lone striker. This season, he has really come to the fore as a world-class talent—and now the other players look to him to not only make things happen, as before, but also to dig them out of their holes, too.

His industry and honesty mean he will always be a threat for this Liverpool defence—which is blessed with neither the speed nor the strength to combat the United front man.

A win for United would serve as a huge psychological boost as the intensity of their run reaches fever pitch—and it would set them up nicely to welcome Chelsea two weeks later.



Tough Times for Liverpool and Rafa

Liverpool, for their part, have had their worst season in living memory. Dumped out of the Champions League before Christmas and losing 15 matches in one season, the high- spending Anfield outfit now faces the extra embarrassment of missing out on the Champions League completely.

This is a must-win game for Rafael Benitez and his lacklustre side. Lose and the odds of them finishing fourth will increase exponentially—and despite Thursday's 3-0 win over Lille, the Reds flattered to deceive on the night, and they have yet to turn the corner on a miserable season.

This game not only provides that corner, but it also resembles a last chance for the Reds.

Should Liverpool lose and their rivals win, the points difference would almost certainly be too much for them to bridge, given there are so few games left to play.



Liverpool's Predicted Starting Lineup

Pepe Reina is the only player who has lived up to his billing this year, and without him between the sticks, it is frightening to think of what could have happened to Liverpool's season.

Glen Johnsen will start at right full, with Park most probably his opposite number. It will be interesting to see how the duo combat each other and how United look to break the indiscipline of the defender—or whether he will stay loyal to Rafa's orders and guard the "bank."

Emiliano Insua should start on the left. So far this season, his performances have ranged from the sublime to the ridiculous. The Argentinian youngster is not blessed with pace— and as such, he must choose his forward forays carefully. The enemy he faces on Sunday will be ruthless and swift should he stray out of position too often.

Jamie Carragher, Daniel Agger, and Kryiagkos will battle it out for the central berths, but the Greek international should at least find himself on the bench.

As ever, Javier Mascherano will shield the back four, with the only question for Rafa being Lucas or Aquilani. Looking at the season, it is clear that the Spaniard prefers the creatively numb Brazilian—but he will offer a defensive mind and honesty that the Italian is incapable of offering in the middle.

Dirk Kuyt, Yossi Benayoun, and Ryan Babel will battle it out for the two wide positions as a fully fit midfield should provide Rafa with plenty of questions—except for Albert Riera, that is...

Steven Gerrard and Torres will act as link and striker, and the key to unlocking United will fall to this pair—as it almost does in every match.

So far this year, Gerrard has been a shadow of his former self—and he will be looking to improve upon that poor form as the World Cup gets closer. He is no longer the untouchable player he was—and given the right circumstances, he could find himself outside Fabio Capello's starting XI for Aston Villa's James Milner.

Not only does this game represent a turning point in Liverpool's season, but it also represents a turning point in Gerrard's season.

Torres, who unbelievably finds himself on the bench for Spain, will be the key for Liverpool. His Indian sign over Vidic is sure to be on the mind of the Serbian—and it would not be unusual to see Liverpool try to isolate Vidic early on.



Only One Winner?

Looking at the form book, one could only pick United as a winner of this game. But these matches notoriously have their own style of ecosystems and are literally impossible to call.

For instance, no one would have predicted that Liverpool would have destroyed United 4-1 in this fixture last season.

When push comes to shove, I expect Manchester United to have too much for Liverpool in this game.

United will push their wide players right down onto Liverpool's full backs—but with Liverpool pretty much employing a defensive eight and trying to catch teams on the break, they will contribute to their own lack of ambition.

That will leave United's midfield to pick up Gerrard in an effort to snuff out their one consistent creative source in midfield.

Saying all that, Liverpool will fight tooth and nail for every inch of ground—and the onus will be put on the likes of Fletcher and Carrick to create something out of nothing as the Reds will leave no blade of grass unguarded.

Almost too difficult to call, but it is hard to see United not scoring...

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Big Sam To Rafael Benitez: I'm Under Your Skin, I Don't Like You And You've Blown Liverpool's Chances Of Reaching The Champions League

Just when you thought it was safe to go back out on the pitch. Big Sam and Rafa are at it again. Fresh from Benitez's Barcelona jibes, Big Sam has hit back by claiming he has got under Rafa's skin, that he doesn't like him, and that the Liverpool manager has blown his clubs chances of reaching the Champions League.

This round of their constant belittling of each other started on the eve of Blackburn's trip to Liverpool where Sam Allardyce claimed that Rafa had turned Liverpool into a modern day version of Bolton.

An unhappy Benitez decided to bite his tongue on that occasion, but hit back in the press conference following the Reds 2-1 win over Rovers.

An angry Rafa said: "We can win on the pitch but some people have to talk before and after the game because they find it difficult to do a football job. I am sure he is a model for football all around the world. I am sure Barcelona are thinking about copying their style of football," amongst other things, but that was his most damning comment.

It appeared to be the final say on the matter, this season, but following Liverpool's shock 1-0 loss to Wigan at the DW Stadium, Big Sam has returned with a few choice words of his own.

"It was a good cover-up by Rafa (jeering Blackburn's style of play) because he knows how bad his side were and that was repeated against Wigan on Monday night.

"He's got personal with it for many, many years now.

"That's why I don't like him and the feeling is probably mutual.

"I don't get personal with him; I get into him and under his skin, yes, but that's all part of the game.

"The tit for tat between me and Rafa will probably go on until one of us is no longer a Premier League manager. I've managed to psyche out one or two here and there and that's how the Premiership has evolved over the last 20 years. But no, Pep Guardiola has not been in touch yet!"

He went on: "The last time one of the big four didn't finish in the top four it was Liverpool - Everton got that spot - and I think this time it looks pretty difficult having lost against Wigan.

"They are having to rely on other teams slipping up now. They have a wealth of experience and that may be a telling factor when the nerve ends start jangling. We saw what happened to Tottenham a few years ago with the famous 'poisoned lasagne' scenario - and they let it slip.

"But I think it might be more difficult for Liverpool this time around because there are more teams involved. There's Manchester City, Aston Villa and Tottenham in there and if Everton keep rolling on you might be surprised to see them making a late run."

Allardyce insists that Liverpool's losses to Wigan and Lille prove that he has won the psychological battle. He said: "You do it to try to get your team in a position to get a result. Personal criticism is not the road I go down, and I don't personally criticise Rafa Benitez but I clearly get under his skin and that can be a benefit to my side when we play them."

With the two of these guys going at it hammer and tongs you could almost believe they were rival boxers rather than managers of football teams.

Pity they won't meet again until next year...

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Rafa The Klingon Twists The Knife On Big Sam After Liverpool Beat Blackburn

The Klingons have a saying; Revenge is a dish best served cold. After years of thinking that Rafael Benitez was an emotionless Vulcan, it would appear that he is actually a first cousin of Worf...

Mere moments after Liverpool vanquished Blackburn 2-1 at Anfield, Rafa couldn't wait to stick the knife into Big Sam and twist. Of course, his comments were a direct reaction to Allardyce's claims that he had turned Liverpool into an expensive version of Bolton.

The relationship between the duo has always been strained, but now it is absolutely poisonous.

Blackburn for their part received five yellow cards during the game, and were lucky not to see Chimbonda and Nzonzi get red after two awful challenges. But Sam defended his team's discipline by saying that the referee had been swayed by the Anfield crowd.

Allardyce pointed out that Liverpool had committed 25 fouls without being punished with a card, while Blackburn had only made 10 fouls.

“If we had possessed a goalscorer, we would have won,” he said. “It is not often you come to Liverpool and create more chances than them but we don’t have a goalscorer and they have Gerrard and Torres.”

Rafa for his part was pretty unrepentant and left his most vicious comments 'til last.

“It doesn’t matter, we won,” was Benitez’s retort when that was put to him about Liverpool's current style of play.

“We prefer to play football. If they play the way they play under this manager, it is difficult but it is their decision. When you have won you don’t have to think about how you played...”

“We have four or five players bleeding because of studs,” said Benitez. “We can win on the pitch but some people have to talk before and after the game because they find it difficult to do a football job. I am sure he is a model for football all around the world. I am sure Barcelona are thinking about copying their style of football.”

Ouch...

Look out for their next bout in 2011...

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Blackburn's Big Sam Taunts Liverpool and Rafael Benitez -You're The New Bolton!

Never a pair to let sleeping dogs lie, Big Sam has moved to provoke Rafael Benitez and Liverpool fans everywhere, by claiming that the Spaniard has destroyed Liverpool and turned them into a modern version of Bolton.

The duo have endured a rivalry that began in 2004 when Bolton beat Liverpool 1-0, the result stirred Benitez to launch a scathing attack on the Lancashire club and their manager for the physical tactics employed during the game. Of course Big Sam reciprocated, and the duo have taken every chance to wind each other up since.

Last season Rafa drew the ire of Big Sam after the Blackburn boss read his counterparts body language as being extremely disrespectful.

Liverpool had taken an early two goal lead through Xabi Alonso when the Liverpool manager walked from the dug out with his arms in a gesture of finality. Big Sam read the hand gesture as Rafa saying the game was all but over. However, Benitez then countered by saying that his gesture was aimed at Alonso, who had refused to follow his managers orders prior to scoring.

Either way it was a storm in a tea cup as both managers looked to get one over on each other.

The two main protagonists meet again today when Blackburn travel to Anfield, and Big Sam has moved quickest this time, by claiming Liverpool under Benitez are just like the Bolton team he used to criticise.

Allardyce said: ‘He’s used all that stuff that he always says he doesn’t like — it’s ironic, isn’t it?

‘I watched them at Manchester City and they got six players booked, so he’s brought the physical side out as well.

‘If it’s a good physical challenge on Sunday then I’ll be more than happy to go down that route — although I don’t really have the players to do that like I did at Bolton.

'But they’ve had to go back to basics and the pretty stuff goes out of the window until you start winning. They have been professional and dogged enough to slowly improve over recent weeks.

‘They have not been as pretty and fluid as they could be but they have done the job and got the results they needed to get back in the pack.’

Allardyce also sensationally revealed that, at the height of the pair’s dispute, he discovered that Rafael Benitez had gone to referees’ chief Keith Hackett with video evidence against Bolton.

Such was the Liverpool manager's dislike of Bolton and Sam Allardyce, he actually compiled a DVD of all of their fouls and tactics and then distributed the recordings to the top referee in the country.

Why Benitez would take such a route is unknown, but it does come across as being extremely childish. Was it an effort to influence referees decisions against Bolton?

Allardyce thought so before adding: ‘He went as far as putting a DVD together and sending it to Keith Hackett. He doesn’t know I know that, but I do. I got on to Keith Hackett and told him I didn’t want it to influence what refs do because it was all a load of rubbish.’

This match between the pair is an important one. Liverpool are currently embroiled in a four way battle for fourth. With only one point separating four teams, Spurs, Manchester City, Liverpool, and Aston Villa.

Losing ground at this stage of the race would be tantamount to disaster and the Reds will go into this game needing to collect all three points.

Fernando Torres and Yossi Benayoun are returning to fitness but should find themselves on the bench, meaning that Liverpool will employ the same stifling tactics that have seen them only lose once in the league since Christmas.

Blackburn, for their part, are on a similar run to the Reds having only lost twice since Christmas and they have begun to pull away from the drop zone that threatened to engulf them.

11 points off the relegation zone and 11 points off Europe mean that Big Sam's team should finish in mid-table respectability.

They will not be easy for Liverpool to break down, especially in their current state, but the difference should be seen when Rafa springs his aces from the bench.

A tight affair that Liverpool should just nudge, but as ever, all eyes will be on the two managers.

John Terry and Wayne Bridge, who?

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Rafael Benitez To Juventus: Black and White or Red All Over?

It would seem that the soap story at Anfield has taken another twist, after Juventus confirmed that Rafael Benitez is their number one target to take over from the embattled Ciro Ferrara, and wood was definitely thrown on the fire after Rafa's agent suggested the move could happen...

Who Will Replace Rafael Benitez at Liverpool?

Liverpool are now out of all the domestic cups, out of the Champions League, and adrift in the Premiership. It looks as if Rafael Benitez will be replaced, but who is up to the task?

It would seem that bookmakers have already decided that Rafael Benitez has no future at Liverpool. The strangled 1-1 away to Stoke will not have done anything to deflect the talk that Rafa will be replaced, sooner rather than later.

DEFCON-1 for Liverpool and Rafael Benitez After Abysmal FA Cup Defeat to Reading

Just when you thought it couldn't get any worse, Liverpool's disastrous season under their bungling manager Rafael Benitez has almost hit rock bottom. Outplayed by Reading at Anfield, the once great club have bowed out of the FA Cup.

For many fans of Liverpool, Rafa has now reached his rubicon. Last season's progress gave him one more year to bring the club forward, but this season has seen the club lurch from one crisis to another.

Fernando Torres To Put Country Ahead of Club and Elect for Surgery

Just when you thought Liverpool's current woes could not get any worse.

If reports in Spain are to be believed the Spanish FA are pressuring Fernando Torres to undergo surgery on his hernia as soon as possible so that the striker will be fit heading into the World Cup come June.

With Liverpool's season evaporating into a cloud of empty dreams, the liklyhood of Torres electing to move the surgery forward is becoming a very real possibility.

Five Steps For Liverpool To Win The Premier League

Liverpool are as far from winning the Premier League as at any time during their last 20 barren years. But as ever, there is an optimism in the air. After all, Manchester United went 26 years without a trophy, and we all know how the last two decades have gone.

So anything is possible where a big club is involved...

Time Running Out For Rafael Benitez at Liverpool

There is no shame in losing to Arsenal, but the manner in which the Gunners beat Liverpool will give Rafael Benitez nightmares as he faces up to their umpteenth false dawn this year and what to do next.

Despite his promises this week that this game was the real start to the Reds' season, it has turned out to be another week in which the Reds were pushed aside by a team with a superior work ethic and a better grasp on what is needed to win a match.

Liverpool vs. Arsenal 2009 Vintage; Not The 1989 Classic

On the 26th of May, 1989, Liverpool and Arsenal played in the final game of the most nail-biting league finish of all time. On Sunday, they meet in a match that is sadly just another in the calender year...

Rafa Stares Into the Abyss After Birmingham Draw

The best slant that can be put on another poor Liverpool performance is that they managed to come from behind to draw against Birmingham But that tells it's own tale, as the equalizing goal came from a penalty after David Ngog dived to win the spot kick...

Rafa's Bluff Backfires as Liverpool Draw with Lyon

A last minute equalizer by Lisandro Lopez has left Liverpool's Champions League qualification hanging in the balance as they wait on results in other matches to see if they will progress. A Ryan Babel screamer sent the travelling Reds fans delirious as they snatched a late lead before succumbing to the late knock out blow that sees Lyon through to the next phase.

All eyes were on Liverpool in the run up to the crucial tie. Many ex-Liverpool legends had heavily criticized Benitez after Saturday's defeat to Fulham, feeling that he was hinging the entire season on the next match against Lyon, and winning the Champions League.

During the week Benitez appeared to have been robbed of his best players and said the injury crisis at the club was the worst he had ever come across in his entire professional career.

With so much hinging on the Lyon tie, many Liverpool fans were extremely worried about their clubs chances, considering they had so many players out.

In the end it was all a bluff on Benitez's part, as only Steven Gerrard and Glen Johnsen were missing from the first team to have played regularly this season.

Liverpool controlled the vast majority of the game, Lyon going through their own injury crisis were there for the taking.

The first half was a very tight affair, with only one real chance worth noting as Fernando Torres' snap shot was saved by the feet of Lloris, the keeper who should find himself between the posts when France play Ireland in the playoffs on Saturday week.

Lyon for their part looked to be playing for the point they needed to progress, and they seemed most happy with the lack of penetration on Liverpool's part. In this the Reds were their own worst enemies as play broke down with Andrei Voronin time and time again.

Alberto Aquilani was on the bench, and while the game was screaming for a player of his creativity to be brought on, Benitez chose to stick with the Ukrainian international, much to the dismay of the watching audience.

Liverpool should have gone ahead in the second half but Lloris saved brilliantly to his left as Lucas Leivia tried to curl a shot around him. The home side were becoming edgy and their lack of ambition was obvious for all to see as the Reds controlled midfield and went looking for a winner.

As Liverpool pressed, Lyon had to thank their lucky stars as the ball was cleared off the line from Kuyt's acrobatic overhead kick when a goal was deserving of the effort.

But it wasn't all one way traffic, Kyrgiakos and Agger's lack of communication and Carragher's lack of pace at right full left Liverpool open as Lyon began to launch some counter attacks.

Reina crucially produced a fine save from Lisandro after confusion between Kyrgiakos and Agger and the pair were at it again minutes later as a superb pass from Ederson opened up the square Liverpool defence entirely only for Lisandro to fire wide.

Rafa then went to change the game but brought on Babel for Voronin, when everyone thought we were about to see Aquilani enter the fray.

As it was it turned out to be a great move as Babel fired in a thunderbolt from fully 25 yards after he cut in from the left.

The most notable thing about Babel's wonder goal was the distinct lack of celebration as he looked mutely towards Benitez with a "this is the kind of stuff I can do" look.

All Liverpool had to do was hold on for the final seven minutes, but all of a sudden Lyon came to life and started pushing extra men forward for the first time in the match.

They got their just rewards in injury time as the ever dangerous Lisandro controlled a lobbed through ball to shoot past Reina after both Kyriagos and Agger had made vital mistakes in the run up to the goal.

Neither defender clothed themselves in glory with their inept performances but Kyriagos looks a really poor player at this level and is anything but a Liverpool player.

The draw means that Liverpool now must rely on Lyon travelling to Fiorentina and winning, with The Kids already qualified this looks unlikely, especially as a draw would virtually guarantee Fiorentina's progress if Liverpool don't beat them by at least three goals.

Not qualifying would cost the Anfield giants at least £17 million, and for a club who are currently losing £650,000 per week and in debt for £290 million, this would be a disaster of the highest order.

So it would appear that Benitez's injury crisis bluff has backfired badly, Lyon achieved their target of a draw and now Rafa must travel back to Liverpool and face the fans and ex-players who questioned his judgement after picking a strange team against Fulham last weekend because his hands were tied due to injuries.

The tide has begun to turn against Rafa. The first signs were against Lyon at Anfield last week when Benitez was booed after he substituted Yossi Benayoun with only minutes to go to rest him for the United game the following weekend.

Then legends like ex-captain Ronnie Whelan openly criticized their manager, and questioned his activity in the transfer market during his tenure.

Asking questions about Benitez spending £210 million in six years and why the team only has one recognised striker and a very shallow squad.

Liverpool's next two Premier League games are at home against Birmingham and Manchester City before they travel to Hungary to take on Debrechen.

For Benitez to keep his job he needs to win all three matches, but the decision on his time at the club will surely not be taken before it is mathematically impossible for them to qualify for the knock out stages of the Champions League.

And even if Liverpool do win these three matches they then embark on another tougher three match run where they must win all three again. The only real difference is that this time they travel away to Everton and Blackburn before they entertain Fiorentina, who should have at least picked up a point against Lyon, meaning that Liverpool must beat them by three clear goals to qualify.

Four days later Arsenal travel to Anfield.

Liverpool have only won once in their last eight games in all competitions. And for Rafa to save his job they must beat both Debrechen and Fiorentina (by three goals) as well as winning their next five Premiership matches, otherwise even qualifying for the Champions League next to impossible.

Tomorrow is Guy Fawkes night, and many Liverpool fans will be making effigy's of their current manager to burn. Lose their next CL matches and any of the next five EPL matches and Rafa's time at Liverpool could and possibly should be at an end.

Rafa to Walk Through a Storm Into The Lyon's Den

Liverpool travels to Lyonnais to play what is simply the clubs biggest game in decades and certainly the most important in the clubs recent history. Bigger than Istanbul, bigger than Rome, and possibly even bigger than that fateful night in 1892 when a few long-sighted men decided to split from Everton to set up their own team.

Yes, the game is that massive...

After Everything, Is Rafael Benitez Off To Real Madrid?

Every Liverpool fans worst nightmare has moved one step closer as Real Madrid have confirmed that Manuel Pelligrini only has one week to save his job, or he will be replaced. And Rafael Benitez is the favourite to replace him...

Crisis at Liverpool For Rafael Benitez

Following their loss at Anfield to Lyon in the Champions League, most Liverpool fans meandered away scratching their heads wondering where it has all gone wrong. A fourth defeat in four games leaves the club on their worst run for years, and manager Rafael Benitez's job is now in severe doubt...

EPL Review: Fergie Says Sorry, Sort Of...England Are Sorry, and Rafa is Blamed...

Just because there were no Premiership matches doesn't mean the league just stops.

So much for the Respect campaign, as Fergie waited a full week before issuing a strange apology to referee Alan Wiley, while England put in the type of performance that only apologies can cover and Rafa got blamed by George Gillett, who reckons Liverpool's finances are rosy...

Worrying Trend Developing at Liverpool, Inability To Beat Good Teams...

Liverpool have played 11 matches this season, four of them against decent opposition and they have lost all four. Is a trend beginning to develop at Anfield that could deny the club of that coveted Premiership title?

Liverpool slumped to their 4th defeat in 11 games with a 2-0 loss at Stamford Bridge against high flying Chelsea. The result leaves them just outside the top four and with an uphill battle if they are to have any say in the direction of the title this season.