The Reds boss has confessed that his side are unlikely to qualify for the Champions League and will suffer knock-on effects.
Liverpool slumped to their second costly defeat in succession on Saturday, with the Reds put to the sword by Arsenal at the Emirates Stadium.
A 4-1 loss in North London means that any faint hopes the Merseysiders had of finishing in the top four and qualifying for the Champions League now hang by a thread.
Brendan Rodgers has admitted that his men are now unlikely to qualify for Europe’s top tournament and will find it difficult to attract top talent as a result in this summer’s transfer market.
“It makes it difficult, there’s no doubt about that,” the Northern Irish manager is quoted as saying by The Daily Mail.
“Most players want to be in the Champions League. They want to play at the top level of the game and if you’re not in the Champions League it makes it difficult for you. We know that.
“It’s going to be a little like this until we become more stable. We’ve got young players who are growing, getting more experience and then hopefully there will be a period where we qualify again. We want to be in the Champions League. That’s important and it is key for us.
“It’s highly unlikely this year. But Liverpool is a great club. I said that before I came into it. It’s a phenomenal club that players want to play for.”
After losing Luis Suarez to Barcelona last summer the Reds spent big on new players, with contrasting results.
While Emre Can has proved to be a shrewd acquisition, the arrivals of the likes of Mario Balotelli, Rickie Lambert and Lazar Markovic have been less fruitful.
Retaining the club’s best players, such as Jordan Henderson and Raheem Sterling, will also be a priority at the end of the current season.
Liverpool’s Champions League campaign ended at the group stage this season, while the Merseysiders now find themselves in fifth place in the Premier League - seven points behind Manchester City having played a game more.