Former Liverpool midfielder Dietmar Hamann has described the offering of a six-year Anfield contract to Jurgen Klopp as an emotional decision by the club rather than a pragmatic one.
The Reds, who lost 2-0 to Hull City on Saturday, are yet to earn a Premier League win in 2017 and were knocked out of the EFL Cup by Southampton and the FA Cup by Wolverhampton Wanderers in January.
Since taking over from Brendan Rodgers in October 2015, Klopp has led Liverpool to an eighth-place league finish and to the final of the League Cup and Europa League, where the Reds lost to Manchester City and Sevilla respectively.
"I found it strange," Hamann told BBC Sport. "You don't get stability from a six-year contract - you get it from good work in the transfer market.
"He had an impact and has improved some players but if you look at the pure facts, the points average didn't improve dramatically from Brendan Rodgers's time.
"They have lost two finals - both they could or should have won - and then the club make a decision with their heart and not their head and extend the contract.
"I hope he is there for six years, that means the club will have been successful. But if you look at the table, they were one of the favourites for the title six or eight weeks ago and now there is a big question mark whether they will finish in the top four."
Liverpool were Chelsea's closest rivals at the top of the Premier League on January 4, trailing by five points, but are now fifth, 13 points behind the leaders.