Liverpool hero Ray Houghton says his old club can never be considered among the Premier League's elite.

Manchester United, Chelsea, Manchester City and Arsenal are able to afford far higher wages and transfer fees and that is what concerns Houghton.

He told the BBC: "The owners are going to have to try and do something about it. Whether they are willing to, only time will tell.

"Liverpool are not in that area when it comes to actually spending and paying out on wages. They can only bring in a certain calibre of player.

"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 can't pay that. I think that the highest-paid player is Daniel Sturridge and I heard that figure is about £150,000 a week."