THE extra £4million Liverpool refused to cough up in their attempts to sign Simao Sabrosa last summer suddenly seems a much more expensive misjudgement this morning.

The richest of ironies saw the Portuguese midfielder curl in the goal that effectively brought an end to the Anfield side's reign as European Champions and dragged into sharp focus a number of underlying concerns at the club.

Liverpool's continued impotence in front of goal ultimately proved their undoing as they frittered away a clutch of early opportunities to slip out of Europe in hugely disappointing fashion.

But the ramifications of this defeat could be more far-reaching than merely an absence from the quarter-finals of the Champions League.

Rafael Benitez had been keen to sign Simao on deadline day in August, but after a £8m deal had been agreed Benfica hiked the price up at the last minute to £12m.

That was more than Liverpool were willing to pay, and the transfer was ditched.

Now, with the income from Champions League progress having now disappeared, it could well be up to the Anfield board to find extra investment to ensure their manager is not overly tempted by the multi-million backing of Real Madrid or Inter Milan.

The failure to sign Simao - and, although in hugely different circumstances, Michael Owen - was down to Liverpool's insistence on keeping a tight hold on the purse strings with decisions over a possible new stadium and fresh investment still in the balance.

And in a certain manner, both players have come back to haunt Liverpool. Simao's contribution last night is obvious, but how Benitez's side could have done with the killer instinct of an Owen in attack.

The statistics said it all: 21 shots, 14 corners, no goals.