Ray Houghton says Liverpool now face a fight for Premier League survival.
The return of Kenny Dalglish hasn't had the desired effect so far, and Liverpool slipped to a damaging defeat at Blackpool on Wednesday night.
Liverpool are now just four points above the drop zone, and Houghton told talkSPORT: "They're in a relegation battle now.
"Steve Clarke (Liverpool's new coach) is going to have to work on not giving away goals because that's going to be vital."
