Former Liverpool midfielder Ray Houghton believes that the club's wage structure is holding them back.
Raheem Sterling has turned down the offer of £100,000 a week at Anfield already this season, while Jordan Henderson's contract talks continue to rumble on.
Speaking to BBC Sport, Houghton said that he feels the owners' unwillingness to pay more is halting progress at Anfield.
He said: "The owners are going to have to try and do something about it. Whether they are willing to, only time will tell.
"That may have to change if they are going to really be competitive to win the league and be competitive once they get back into the Champions League.
"I don't think Liverpool can compete with Manchester City, Chelsea and Manchester United when it comes to paying wages. You look at some of the players at their clubs reputedly on £250,000 to £300,000 a week."
Liverpool return to action when they travel to Blackburn Rovers in the FA Cup on Wednesday.
