FORMER captain Dave Watson believes that the “missing ingredient” Everton are looking for to compete with the ‘big four’ can only be found through additional investment.

Everton manager Moyes conceded that a certain ‘magic’ was needed from his players in order to challenge for trophies after last Wednesday’s Carling Cup semi-final defeat to Chelsea.

And magic could be the operative word because unless Bill Kenwright can borrow a wand from the theatre and wave it to find a treasure chest that will put Everton on an equal financial footing with Manchester United, Arsenal, Chelsea and Liverpool then it’s seems difficult to imagine where the funds would come from.

Just one league place separated Everton and Chelsea when they met at Goodison Park five days ago but the cost of the hosts’ starting line-up (an estimated £31million) was less than a third of that of the Londoners (£107million).

Although Everton have broken into the top four of the Premier League again this season as they bid to upset the odds in similar fashion to three seasons ago, they have failed to beat any of the ‘big four’ so far this term, losing six of their seven games.

Following their latest defeat to one of English football’s moneyed elite, Moyes admitted his side were still looking to find the ‘special ingredient’ that will bridge the gap between themselves and silverware contenders but Watson reckons only spending can achieve that final crucial step to greatness.

He said: “Chelsea ultimately had better individuals to call on and their players are used to winning titles and cups in recent years.

“They’ve got plenty of Champions League experience and that extra bit of quality.

“Everton have a great team spirit and they’re good honest lads who give you everything in every game. I thought that they gave a good account of themselves but it’s very difficult to take that next step up now.”

Watson added: “David Moyes has done everything possible so far when it comes to improving his squad. He’s signed some great players who have really progressed.

“He’s spotted the likes of Joleon Lescott and Tim Cahill in the Championship and brought them up to the Premier League and they’ve become stars.

“He’s also spent a lot of money on Yakubu but I’m sure he will continue to get you goals. But when it comes to taking things on to the next level you need finance.

“You have to be able to spend the big money to bring in the Cristiano Ronaldos and Thierry Henrys of this world.”

Although Watson remains sceptical whether Everton can ultimately challenge at the top without additional funds, he remains positive about their chances of hanging on for a top four spot. He said: “I don’t think there are an awful lot of better teams below them, the likes of Aston Villa and Manchester City can’t really say they’ve got more ability in their squads than Everton and I think that a top four place remains a realistic aim.

“Of course it will be exciting if it’s another battle with Liverpool for that Champions League spot but one or two people are getting carried away. We’ve had a bit of success in recent years but some expectation levels need to be checked.

“It’s ridiculous to hear some people taking about how we should be challenging to win the league next season as we’ve come a long way in a short space of time.”

In 1986-87, his first season at Goodison Park, Watson was part of Everton’s last league title-winning side but by the time he collected silverware again in 1995, the club had declined on the field to become strugglers against relegation.

Despite their lowly league status, Joe Royle’s ‘Dogs of War’ were still able to cause a major upset against Sir Alex Ferguson’s Manchester United, the dominant force in the English game throughout the 1990s.

When Watson lifted the FA Cup in 1995 he not only became the last Everton skipper to date to lead the club to a major trophy but also the last captain from outside the ‘big four’ to collect either the league or FA Cup.

He said: “There was no ‘special ingredient’ or ‘secret’ from our team in that game. It was just 11 players performing to their maximum level on the day.

“We had it then and were able to beat Manchester United.”

Everton’s hopes for domestic silverware may be over for another year but Watson hopes they can achieve what he was never able to do with the club and taste success in Europe.

Moyes’s side face Norwegian champions Brann in the last 32 of the UEFA Cup next month and if they progress to the last 16 they will face the winners of the Rosenborg-Fiorentina tie.

Watson said: “Everton have been doing great in the UEFA Cup. It was a magnificent achievement to top the group by winning all their games.

“The fans have loved it and they’ve got a taste for travelling around Europe again.

“I wouldn’t bet against them in the competition as the lads look hungry for it.

“There are a lot of good teams in the tournament but nobody is going to want to be drawn against Everton.”