Following an impressive second place finish in the 2013-2014 campaign, the Merseysiders have failed to cope with the Luis Suarez's departure and Daniel Sturridge's injury to end the season both out of the Champions League places in the Premier League and without silverware.
Brendan Rodgers tried to fill the void left by the Uruguay international with eight new players (Mario Balotelli, Rickie Lambert, Alberto Moreno, Adam Lallana, Lazar Markovic, Emre Can, Dejan Lovren, Javier Manquillo) rather than a marquee star and the result has proven this to be a total failure.
The future of Rodgers and Raheem Sterling, the signing of a top scorer, and how to deal with the departure of Steven Gerrard are the four major problems in their summer transfer window.
Business so far
The club have committed to the future of Kolo Toure and a number of young players, including Philipe Coutinho, Jordan Henderson, Daniel Sturridge, John Flanagan, Jordon Ibe and Andre Wisdom. These new deals have laid the foundation for the future, but Liverpool have also let Captain Steven Gerrard move away to MLS side LA Galaxy following 17 seasons at Anfield.
Rodgers has also claimed last summer's signing of Divock Origi will join the first-team squad following a loan season at Lille.
What they need
The Merseysiders need to decide as soon as possible whether to keep trusting in the current manager, and then change their procedure in the transfer window should they want to return to the Premier League elite.
After the failure of both Tottenham and Liverpool to cope with the departures of Gareth Bale and Suarez respectively, it seems obvious that a marquee star needs to be replaced with another world-class player rather than a set of promising talents.
The Merseysiders need to sign a top scorer to finally fill Suarez's void while handling the Raheem Sterling soap opera in a different way. Should Sterling stay it would be a boost, but should he finally move, rather than regretting his departure, Liverpool should invest the money in a top star.
Liverpool also need to replace out-of-contract Glen Johson and find a keeper to fight with Simon Mignolet for the number one role.
Who could join
Christian Benteke, who has a £32.5m release clause, is said to be one of the main candidates to become the new number nine while Luciano Vietto, Jackson Martinez, Edin Dzeko or Danny Ings have also been linked with a move to Anfield to bolster their attack.
The Reds are also said to be in negotiations to sign Southampton right-back Nathaniel Clyne while James Milner may arrive as a free-agent to replace Gerrard in the midfield.
Reports in Spain have also assured the Reds have made an approach to Real Sociedad to secure centre-back Inigo Martinez.
Who could leave
While Sterling's potential departure dominates the news, Mario Balotelli, Lambert, and Borini also face uncertain futures at the club.
What the manager has said
Rodgers has insisted Sterling is going to stay at Anfield while he hopes to sign a top scorer.
"We won't have the numbers coming in like we had last summer. If we can make a couple of specific signings that will hopefully give us a little boost," Rodgers said.
"We couldn't replace what was lost in the team last year. We've brought in some really good young players and they will improve and develop. Every team in the summer will look to improve again and we're no different."