Steve McManaman believes someone at Everton needs "to be held accountable" for "wasting money" on players over the last few seasons and has warned Rafa Benitez he faces the sack.
Everton owner Farhad Moshiri has spent about £500m on new players since taking over the club in 2016, but there has been little return from that investment.
And his side’s poor run of form continued on Wednesday night as they were comfortably beaten by arch-rivals Liverpool at Goodison Park.
Mohamed Salah scored twice in between goals from Jordan Henderson and Diogo Jota for Jurgen Klopp's side, while the Blues had Demarai Gray on target just before the break.
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Rafa Benitez was without Dominic Calvert-Lewin and Yerry Mina for the game, and was forced to name youngsters Jarrad Branthwaite, 19, and Lewis Dobbin, 18, on the bench.
“Somebody, I don't know who it is, has spent a lot of money at Goodison,” McManaman told Amazon Prime Video after the game.
“The new owners have come in and spent a lot of money. You cannot be relying on Dominic Calvert Lewin when things start going wrong or Yerry Mina who is a good centre defender.
“When you looked to the bench today and what they could bring on there was nothing there. So who's wasted this money on these players? Because someone has to be held accountable for it.”
As a result of the defeat, the Blues have now gone eight matches without a win and currently find themselves five points above the relegation zone.
Everton are winless since September 25 when they beat strugglers Norwich City 2-0 at Goodison Park following a bright start to the campaign.
It is the club’s longest winless run since April 2016 and has not gone unnoticed by the supporters, who made their displeasure clear after the full-time whistle.
Most of that anger was directed at chairman Bill Kenwright and director of football Marcel Brands in heated scenes in the immediate aftermath to the game.
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Everton face Arsenal, Crystal Palace, Chelsea and Leicester City before Christmas and McManaman believes the Blues are now heading for a relegation battle.
And the former England international also believes that should the Blues drop into the relegation zone then boss Benitez will be sacked.
He said: “They are going to be in a relegation battle. What if Calvert-Lewin has a relapse or gets injured when he plays again? Because they'll be in serious trouble then.
“They're crawling towards the bottom and their run of games until Christmas is hard. If they go into the relegation zone, Rafa will be out.
“So then someone else will have to come in and they're battling with the likes of Newcastle for players.”