Good points but it is not just the fear of relegation, which is unlikely (though not impossible) even under Hodgson. The real fear is of missing out on a Champions League place for a second successive year and possibly even missing out on a EUROPA League place. How do you attract top class players to the club to move it forward (let alone keep the ones we have got) without the prospect of European football? Players like Reina and Torres came to Liverpool to challange for the very highest honours in world football convinced that we were being guided by one of the great proven tactical masters in the game. Under Hodgson we face the very real prospect of a season out of Europe and an exodus of our best players without being able to offer anything to attract world class replacements. In short a rapid spiralling decline which, history will conclude, was caused by the nightmare reign of Hicks and Gillett (in particular their failure to make any real investment during their last two years) and hastened by their last catastrophic decision to appoint the inept, tragic Hodgson.
The owners had hoped to be able to limp on with Hodgson to the end of the season and that he would somehow turn things around once he settled into the job and snatch a top four place against all the odds. If he failed then they could at least point to the fact that he was not their appointment and as long as we obtained a EUROPA place at least it might not be catastrophic. As stated above, it is looking increasingly likely that Hodgson is not the man to turn things around and the owners, whilst not wanting to panic, don't want to be seen to be dithering and they know that the fans will want them to act decisively when it looks obvious that Hodgson is the wrong appointment. The opening of the January transfer window is adding greater pressure to the owners. Do they back Hodgson in the transfer market and can they trust him? Or, do they offload him and appoint someone else now rather than later (even if only on an interim basis)? Do they stick or twist?
To this extent the club is indeed on a knife edge. If they decide to "twist" then who do they appoint half way through a season? Who is available and can they turn things around? There are two obvious options:
(1) Appoint Kenny Dalglish, probably on an interim basis until the end of the season and hope that he can inspire the club to a European place. The advantage is obviously cost as he is already at the club and his commitment and desire is not in doubt. Neither is his love for the club, its fans and the city and the fact that he would be a popular choice and would provide real unity. The problem is his lack of recent experience, the prospect that he could tarnish his reputation (although this matters more to the fans than to the owners) and if he is successful how do they replace him if they choose to do so in the summer?
(2) Appoint Rafa Benitez, again possibly on a short term basis (would Rafa accept this?) on the basis that it was never their decision to sack Rafa and they wouldn't have done so had they taken over the club a few months earlier. Rafa had had one relatively poor season but under extreme circumstances (cancerous owners) and you should never sack a manager on the basis of one poor season. Let us not forget that Mr Alex Ferguson finished 11th twice and 13th in his first six years and Rafa's worst finish (7th albeit with more points than when finishing 5th in 2004/05) looks great compared to what we might be on course for under Hodgson. Furthermore, Rafa is available, loves the club, the fans and the city and his family are settled here. With the cancerous owners gone and new owners prepared to back his vision Rafa would be a rejuvenated reinvigorated manager. Another advantage would be continuity (he's only been gone 6 months) and it is not too late to halt the dismantling of his legacy. Rafa's CV is as good as any manager's in Europe. He was just a couple of world class signings away from building the team that would have realised his vision and our hopes. How would we have fared if he had been successful in his attempts to sign players like Alves and Simao?
If the owners appoint anyone else then there is always the chance that they (or their family) will not settle, their methods may not prove successful in the Premiership and surely they can never hope to touch Benitez in terms of his proven European record of two finals, three semi-finals and four quarter-finals. Even in the League, will they ever improve upon Rafa's 2008/09 tally of 86 points (75.44% of the total points available and the second highest % ever in the clubs history)? Will players like Torres and Reina fit into their vision? Will they want to completely rebuild the team? If so that would be costly. The team as it is and the youth and back-room set up is still largely Rafa's and wouldn't require a major overhaul if Rafa was re-appointed. That couldn't be guaranteed under a new manager and how long would we fans give them to get things right if they wanted to start afresh?
In my view the best option is to bring Rafa back, maybe give Kenny a more prominent role, give them the backing to fulfil Rafa's vision and accept that he should never have been ousted in the first place and the decision to do so was the last poisonous vindictive act of the cancerous Hicks and Gillett.
If they appoint someone else then is it because they fear Rafa's (and Kenny's) power and influence within the club becoming too great? Do they want a more complient manager who tows their line? If so, is that what we fans want? Shouldn't the owners leave the football side to the manager?
