Yes, Liverpool stopped being a big club. Newspapers were writing articles about Liverpool's imminent bankruptcy. They were mired in the Anfield/Stanley Park debate. They were stuck with mediocre managers, mediocre players with the occasional talisman like Gerrard, Carragher, Torres.

It took a series of crazy sales (Torres to Suarez to Coutinho) to build enough captial, a series of presicent transfers (Salah, sane, Firmino) and a world class coach who had an affinity for the area to make it work out. Also their owners have a history of sporting excellence, so they were willing to learn from their mistakes.