Real Madrid In €45m Swoop For Liverpool Pair Alonso & Arbeloa

Just hours after Liverpool agreed a £17 million deal for Portsmouth full-back Glen Johnson, Real Madrid have tabled a €45m deal for in-demand Spanish midfielder Xabi Alonso, The Daily Mail reports.

It is also claimed that the Johnson move will prompt Alvaro Arbeloa to move to the Santiago Bernabeu for €9.5m.

Real Madrid have not given up hope in their quest to land Alonso, even though they made an offer of €23m that was rejected last month.

The new president of Madrid, Florentino Perez, has been pressured by some fans to add some home-grown Spanish players to the new Galacticos regime.

Chelsea have also made enquiries but Liverpool manager Rafa Benitez did not want to sell Alonso to one of his Premier League rivals.

The Basque player, who began his career at Real Sociedad, has made it clear he has not been happy with Benitez, and a move back to Spain may suit both parties.

Benitez also has to fight to keep another midfielder, as Barcelona are still in the hunt for Javier Mascherano.

Reina Delighted By Ronaldo And Tevez Departures

Pepe Reina has joked its two down and 20 to go as Liverpool relish the sight of Manchester United losing both Cristiano Ronaldo and Carlos Tevez already this summer!

Liverpool keeper Reina admits Anfield's stars are keeping a close eye on transfer speculation in the hope that United will be weakened for next year's title race.

The champions have already lost Ronaldo to Real Madrid in an £80m deal and now that Tevez is on his way, possibly to either Man City or Chelsea, Reina hopes he won't be the last!

"Two of them have gone but there are still 20 to go," he joked. "But we'll just carry on and worry about ourselves. It wasn't nice to lose the title last season but it was nicer than when you are 30 points away from the top teams.

"We fought until the end of the league and that's something to be proud of. Hopefully next season we'll be even closer."

Reina is currently playing for Spain in the Confederations Cup and has guided them to the semi-finals after being given a rare start ahead of Iker Casillas against South Arica in the final group game.

Victory in that match, which set a new world record of 15 wins in a row for Spain, has set up a last-four clash against the United States and the possibility of a glamour final against Brazil.

Reina said: "It's going well for us and I'm proud to be part of a team like this. The first target was to be first in the group and reach the semi-final but we don't want to stop here, we have to continue to the final.

"As for me you have to be ready to play whenever you are needed. I'm always ready for the games just in case something happens because - that's the job."

Reds Make Transfer Raid

Liverpool have made a foray into the transfer market but it is not the big name the fans are craving as Rafa Benitez has snapped up teenager Aaron King from Rushden & Diamonds.

The 16-year-old has risen through the ranks with Rushden but will now get the chance to take his game to the next level at Anfield.

King made a positive impression during a trial with Liverpool and has put his name to a two-year scholarship deal.

Rushden’s head of youth development Paul Driver feels the youngster is fully deserving of his chance on the big stage.

”We are all absolutely thrilled for Aaron - this is a brilliant achievement for everyone involved in his development throughout the five years that he has been with us,” Driver told the club’s official website.

“His progress with us to get to the level where one of the 'Big 4 clubs' is prepared to offer him a scholarship also serves as further evidence of how well we have maintained our system despite the withdrawal of financial support from the football authorities in the past two seasons."

Liverpool In Financial Boost As Co-Owner George Gillett Sells NHL Team

Liverpool co-owner George Gillett has moved to strengthen his financial position ahead of the club’s refinancing deadline in July by agreeing a £330 million deal to sell Montreal Canadiens, his National Hockey League franchise.

Gillett and joint owner Tom Hicks are due to refinance their £350 million loan with the Royal Bank of Scotland and Wachovia on July 24, although the pair are expected to agree a deal to secure an extension to the deadline.

Earlier in June, Liverpool’s accountants, KPMG, warned of “significant doubt on the group’s and parent company’s [Kop Football Holdings Ltd] ability to continue as a going concern” without an extension to the £350 million loan.

The company formed by Gillett and Hicks suffered a loss of £42.6 million last year, largely on interest repayments, despite a record turnover of £164.2 million. The pair took out a loan of £350 million when they bought the club in 2007.

Both Gillett and Hicks have been actively attempting to sell their American sports franchises in recent months to raise funds to consolidate their position at Liverpool. While Gillett has struck a deal with brewing giants Molson for the Canadiens, Hicks continues to search for a buyer for his Texas Rangers baseball franchise.

The Canadiens deal has yet to be approved by the NHL’s board of governors, but although it could take up to six weeks for the sale to be ratified, it is not expected to be blocked.

NHL commissioner Gary Bettman said: “I think to the extent that they [Gillett] have been able to find people who are obviously passionate about the game and structure a transaction that makes sense for everybody, that’s a real plus for the franchise.”

Despite the sale of the Canadiens, uncertainty still surrounds the futures of Xabi Alonso and Javier Mascherano. While reports of Chelsea preparing a move for Fernando Torres have been dismissed as a non-starter on Merseyside, Real Madrid are closing in on Alonso and Barcelona remain hopeful of signing Mascherano.

Fernando Torres: I Won't Leave Liverpool FC For Chelsea

Fernando Torres has laughed off rumours of a switch to Chelsea, insisting he wants to win trophies with Liverpool.

The news comes as the proposed sale of George Gillett’s ice hockey club Montreal Canadiens offers hope the financial cloud over Anfield can be lifted.

Reports yesterday suggested that just a week after Torres was linked with a shock move to North West rivals Manchester United, Chelsea are now planning to test Liverpool’s resolve over their Spanish striker with an audacious £50m bid.

The Londoners are also believed to have entered the race to try and prise compatriot Xabi Alonso away from Anfield but Torres has reiterated his desire to remain at Anfield – believing that Liverpool are on the verge of claiming major honours again.

He said: “In the past two years, United have been the strongest team in Europe and we had to fight against them.

“This year they have lost an important player, so maybe it is our time.

“When I signed for Liverpool the main thing was to win trophies for them.

“It has been frustrating for me because for a club like Liverpool to go two years without a trophy is too long. But I think its coming.”

In a summer in which an array of Liverpool stars have been subject to a series of transfer rumours, the Anfield outfit’s ability to hold on to its prize assets like Torres could now be boosted by co-owner Gillett’s proposed sale of the Montreal Canadiens to the Molson family.

The deal to sell the NHL’s most successful ever team is worth a reported $550m (£330m).

Liverpool Beat Real Madrid & Barcelona To Signature Of Suso

Liverpool have stolen a march on Spanish giants Real Madrid and Barcelona and secured the services of highly-rated Cadiz teenager Jesus Fernandez Saez, nicknamed Suso, according to Setanta Sports.

The broadcaster is reporting that Rafa Benitez's outfit have beaten the two La Liga sides to the 16-year-old's signature, with the midfielder signing a five year deal at the club.

Benitez has reportedly been monitoring the midfielder's progress for the last few months, and, with both Barca and Real apparently hovering with intent, he will be pleased to have snapped up another of his compatriots to further boost the strong Hispanic contingent on Merseyside.

Liverpool will pay a compensation fee to Cadiz, although no figure has been specified as yet. But it is anticipated that the Reds will pay much more than the amount officially required to take over the player's academy contract.

The signing should be confirmed by the club in the next few days.

Enter Glen Johnson - Now Liverpool Now Have The Best Right-Back In The Country

There have been critics, who shall remain fabulous and anonymous, of Rafa Benitez's transfer policy in recent seasons, but when he gets it right, few can pick them better.

A vast majority of neutrals consider Javier Mascherano to be among the leading defensive midfielders in the world, and you would struggle to find a better all-round No. 9 than Fernando Torres.

Robbie Keane may have ended up being a monumental way to waste £8 million (money spent factoring in the resale), and going as high as £17m for Gareth Barry seemed wholly unnecessary for a team that already had one of the best central midfield partnerships in the world, but Rafa now, by some method of madness, appears to have found his way again.

No one with £17m in their pocket would usually think that the best place to spend it would be on a right-back, never mind a right-back playing for Portsmouth, rejected by Chelsea and written off as nothing more than a failed prospect, but this time next summer, they might just be re-evaluating their principles.

For those who don't know, Glen Johnson appeared on Liverpool's website in what was a comical give-away of his having agreed to join the Reds. It would take a revolt of Robinho proportions or a teething problem in the mould of Aly Cissokho to put a stop to this deal now.

Portsmouth already accepted a bid from them, as well as one from Manchester City and another from Chelsea, but the full-back could not have made a better choice from the three.

Chelsea's mere interest, as the club that rejected him just two seasons ago, is more than curious. They only just filled their right-back slot for good last summer with the quality acquisition of Jose Bosingwa, and unless new Blues coach Carlo Ancelotti had planned to ship off the Portuguese elsewhere, quite how Glen Johnson figured into the equation at Stamford Bridge is unclear.

City offer one obvious incentive with not a lot else on top, when you consider they are competing with two of the highest ranked clubs in UEFA. Again, amongst the likes of the promising Micah Richards and new signing Pablo Zabaleta, there was no necessity for Johnson at Eastlands and nor would there have been any guarantee of success.

Still just 24, the defender has shot straight into his prime, further fine-tuning his initial promise going forward with more discipline in defence. Liverpool, while not ill-equipped with Alvaro Arbeloa at their disposal, were missing that little extra something, but not anymore.

Michael Carrick established two seasons ago the going rate for an England international signing for one Premier League club from another, and excessive though it is, Johnson is as good a guarantee as any to be, in relative terms, more than value for money.

For all Dirk Kuyt's virtues for Liverpool operating from right-wing, his talent is goal-poaching, and he can't help but look a little lost out wide when he has the ball and is under a degree of obligation to do something with it. Johnson, fresh from providing no fewer than four assists in his last England appearance and being arguably Portsmouth's most creative player all season from right-back, will go some way towards solving that problem.

The Reds have a spine to match any other in world football, but where they lack is not only in alternatives, but also quality flair players to fill the wide slots in Rafa's rigid 4-2-3-1 formation. Signing Johnson, assuming they can keep Arbeloa from fleeing back to Madrid, will give them both the strength and depth they require to match anyone.

It can only help the team to have more quality English talent to add to the mainstaying duo - club captain Steven Gerrard and his deputy, Jamie Carragher - who have been left holding the fort in the Reds' current best XI. Gareth Barry fell through - and probably for the best - but Gerrard in particular would no doubt be delighted to welcome another international team-mate to the fold and help shake Liverpool's tag of being something of a Spanish Armada.

In truth, Man United may have done well to snap up a third product of West Ham's youth system for their starting line-up, but look like settling with the rotation system between the injury-hit Wes Brown, the eternal stand-in John O'Shea and Rafael da Silva - another in a long line of flying Brazilian full-backs.

Here, Liverpool have made the move and spent the money where United did not, and they will be the ones to benefit immeasurably next season - a full-back may only be a full-back, but the best ones always find a way to make a difference. Bakary Sagna at Arsenal and Chelsea's Jose Bosingwa can claim superior proven pedigree, but it's Johnson who outshone them both last season, and he now has the perfect platform to cement himself as the best in the Premier League and of course, the best England has to offer.

Leto Set For Panathinaikos

Liverpool winger Sebastian Leto has revealed he is almost certain to move to Panathinaikos in the near future.

The 22-year-old is set to leave the Reds after it was discovered he would have little or no chance of gaining a work permit due to his lack of appearances on Merseyside.

The Argentine only joined the club in the summer of 2007 and spent the entire of last season on loan at Greek side Olympiakos.

The former Lanus youngster admits that he would have preferred to make his move to the Greek champions permanent but the offer never came.

"I am very close to Panathinaikos," he said. "There are negotiations between Panathinaikos and Liverpool and as far as I know the two sides are very close to a deal.

"I think that the possibilities to play at Panathinaikos next season right now are more than 90 per cent.

"I have been waiting for something from Olympiakos all these weeks but they didn't make a move to buy me so far.

"It's not a matter of money. I wanted to stay at Olympiakos but since they don't want to sign me I have to think about my future."

Barcelona To Offer €20M For Mascherano

Barcelona are to test Liverpool's resolve by making an opening offer of €20 million in an attempt to prise Javier Mascherano away from Merseyside, according to a report.

The Argentinian midfielder is rumoured to be a target for the Blaugrana this summer and, after talks with the player's representative, a plan has been hatched to try and persuade the Reds to sell.

Agent Walter Tamer was in the Catalan capital last week talking not only about what could be on offer at Camp Nou but also helping to formulate a way of brokering a transfer, Sport state.

Rafa Benitez has stated that he does not want to sell the influential Mascherano, but the feeling is growing that he is going to have to let one of his midfielder's go this summer.

Xabi Alonso is wanted by Real Madrid and possibly Juventus, after the Italians reignited their interest a year after they first showed an interest.

The pressure is on Liverpool is really starting to mount.

Benitez wants money to spend, and the sale of Mascherano to Barcelona could open up doors for him to have the pick of the European champions' fringe layers and youth teamers.

Sport believe that if Benitez is told he can use every penny of a transfer fee for Mascherano, then he will try to negotiate with Barca and could ask about Toure Yaya.

The Ivory Coast international has held talks about a new contract at the Catalan club, but the arrival of Mascherano would leave an over-crowded midfield and might tempt him to leave.

Alvaro Arbeloa's Agent In Talks With Real Madrid

Alvaro Arbeloa's agent has reportedly been at the Bernabeu this morning to hold talks about a possible move to Real Madrid.

The defender has been rumoured to be leaving Liverpool this summer and only has one year left on his deal with the English club.

Now Marca reports that Manuel Garcia Quilon, agent to both Arbeloa and Ruben de la Red, has been at the Bernabeu today possibly holding talks with the club.

One factor that seems to elude to a move away from Anfield for Arbeloa is the fact that Liverpool appear to be on the verge of signing another right-back in Glen Johnson.

Should the English defender arrive this summer then it is hard to see Arbeloa staying and playing mainly off the bench behind him.

Hence, a return to Madrid could be on the cards, and the player himself has not denied speculation linking him with a Bernabeu move, instead remaining coy on the subject.

Should he go back to Madrid it will be a return just four years after he left to join Deportivo La Coruna.

It was from there that he was signed by Liverpool, but now it looks as if his future at Anfield is in serious doubt.

Liverpool Appoint Christian Purslow As Managing Director

Liverpool co-owners George Gillett and Tom Hicks have confirmed that Christian Purslow has been appointed as the club's new managing director.

Purslow will assume the role until a new chief executive is found to replace the outgoing Rick Parry. He is then expected to continue as a board director.

A statement on the club's official website reads, "As managing director, Purslow will represent the owners and oversee all financial and operational aspects of the Club, working with [manager] Rafa Benitez on player transfers and with the Club's Group Chief Financial Officer, Philip Nash and Commercial Director, Ian Ayre on Club and commercial management."

George Gillett remarked, "Tom and I felt that it was important to put a highly experienced and respected executive in place to run the club and support the senior team and the manager.

"There's a lot to get done over the summer to build on the great season we just had and Christian will be a valuable addition to the team."

Tom Hicks stated, "Christian has been a great supporter of the club for many years and he's already built up good relationships at Anfield.

"His strategic and commercial acumen will be a real asset and we're delighted that he has made a long term commitment to the club."

Liverpool Co-Owner Agrees $550m NHL Deal

Liverpool owner George Gillett has agreed to sell the NHL's Montreal Canadiens to the Molson family in a deal that could help lift the financial cloud over the Premier League club.

The deal to sell the NHL's most successful ever team is worth a reported $550m (£330m).

Gillett put the Canadiens up for sale earlier this year as he scrambles to find funds to meet obligations on debt incurred as part of his takeover of Liverpool in partnership with Tom Hicks.

The sale includes Gillett's 80% stake in the team, the Bell Centre arena, and the Gillett Entertainment Group. Brewing moguls the Molsons, who sold the controlling interest in the team to Gillett for around $275m (£165m) in 2001, already own the remaining 20% share.

''This is a very exciting time for our family and we are grateful to the many people and organisations who came forward to offer their collaboration in the development of our proposal,'' Geoff Molson said in a statement.

The sale must first be approved by the NHL's Board of Governors, and will likely not be completed for several more weeks.

The NHL's approval of the sale would, however, seemingly be only a matter of course.

NHL commissioner Gary Bettman responded positively to the news of the deal, saying: ''I think to the extent that they've been able to find people who are obviously passionate about the game and structure a transaction that makes sense for everybody, that's a real plus for the franchise and the fans in Montreal.''

News of the deal comes a little over two weeks after Liverpool's accountants warned of ''significant doubt'' over the club's parent company's ability to continue as a going concern with debt repayments due on July 24.

The company formed by Gillett and Hicks suffered a loss of £42.6m ($70.5m) last year, largely on interest repayments. The pair took out a loan of £350m ($580m) when they bought the club in 2007.

While Hicks and Gillett have been seeking other investors for Liverpool, they have so far come back empty-handed, meaning funds from a sale of the Canadiens could be needed to help cover upcoming payments.

Hicks has also been seeking to sell off elements of his own sporting empire - which includes Major League Baseball's Texas Rangers and the NHL's Dallas Stars.

Hicks' situation is further complicated as the Hicks Sports Group in April defaulted on a £325m loan ($525m) relating to the Rangers and Stars.

The Canadiens, who are celebrating their centenary year, are the oldest continually run professional ice hockey team in North America. Their 24 Stanley Cup titles are the most in the NHL.

''Our family has been very proud to be associated with the Montreal Canadiens over the past eight years and particularly to be a part of their Centennial Season,'' Gillet said after confirming the deal.

''I am fully confident that the Molson brothers, who have been a great part of the heritage of the club, will ensure the preservation and development of this great sports institution.''

The Molson family first bought the team in 1978, although their involvement dates back to the 1950s.

Alonso Expects To Stay At LiverpooL

Liverpool midfielder Xabi Alonso has said that he is not planning to leave the club this summer.

The Spain international has recently been linked with a move to Real Madrid amidst rumours of a rift between himself and Reds boss Rafael Benitez.

Alonso did not rule out a move away from Liverpool but insisted that he is happy at Anfield.

"I am happy at Liverpool but in football you cannot close the doors on anything because you don't know what will happen. I do not plan to go," he told El Pais.

"With Sami Hyypia already gone, I am one of the senior players alongside Jamie Carragher and Steven Gerrard.

"There was strong interest in me from Madrid (in 2004) but Liverpool came and that is where I went. It was not a wrong decision, not for me anyway. I have played at Liverpool, a special club, and grown as a player and won titles."

The 27-year-old also denied that his relationship with Benitez has deteriorated in light of the manager's indecision over his future last year.

"Each one has his own point of view. He is the manager and I try to do the best with what he tells me," Alonso added.

"We have a good professional relationship. We speak normally, saying what he wants from me and what I can give. He makes the decisions and we try to execute them.

"Last summer there was certain indecision and I did not know what was going to happen. I finished up playing well, though. I have had two quite complete seasons."

Rafael Benitez Set To Lose Javier Mascherano

Football’s transfer tombola threatens to make Liverpool its grand loser as the game’s richest clubs tempt away Rafa Benitez’s most important players and outbid the Spanish manager for his own targets.

Benitez is close to conceding defeat in his attempts to keep Javier Mascherano after Real Madrid moved for the combative midfielder. He also fears that Fernando Torres could be lost to Chelsea in a £60m heist.

Barcelona were already courting Mascherano when Madrid entered the chase last week. Having set two high watermarks for transfer fees with the £56m purchase of Kaka from AC Milan and their £80m offer for Manchester United’s Cristiano Ronaldo, new president Florentino Perez is prepared to pay £38m for the joint transfer of Mascherano and right-back Alvaro Arbeloa. With Mascherano — who is keen to move to either of Spain’s premier clubs — valued at £30m, the sum would be a record fee for a holding midfielder.

Benitez is also concerned at the prospect of losing Torres, established as the Premier League’s most impressive striker since joining from Atletico Madrid two summers ago. Chelsea inquired about the 25-year-old earlier this year and Benitez believes the London club are now ready to offer as much as £60m. Fearing that Liverpool’s hard-up owners Tom Hicks and George Gillett, might struggle to resist, Benitez has made inquiries about Almeira centre-forward Alvaro Negredo as a replacement. Negredo is half-owned by Madrid and available for £15m.

Chelsea are in the market for a marquee signing to launch Carlo Ancelotti’s reign as manager. Billionaire owner Roman Abramovich promised to top Madrid’s offers for Kaka this month, only for the Brazilian to decide that the Spanish club had a greater status.

While Torres is loyal to Benitez and will not agitate for a move, he recently signed an improved contract which takes him to 2013 without committing to anything more than the option of an additional year at Anfield. Asked about his future while on international duty last week, he said: “I’m very happy with my contract and wouldn’t leave just to earn a little more somewhere else where I wouldn’t be that happy. To want any more would be greedy and that is not me. As long as Liverpool want me, I will stay.”

Having fought to take control of transfer policy, at the expense of Rick Parry’s position as chief executive, Benitez finds his dealings hampered by the £350m loan Liverpool’s American owners have loaded upon the club.

Benitez has to make an economic case for every proposed transfer. Restrictions have already seen him lose Gareth Barry to Manchester City. Liverpool spent all last summer failing to close a deal and then City took just days to match Aston Villa’s asking price and radically improve the England midfielder’s personal terms. Benitez has bid for Portsmouth defender Glen Johnson, but more than a third of the England right-back’s £17.5m fee would be covered by money owed by Pompey on Peter Crouch’s move in 2008. Chelsea have also had an offer accepted, leaving Johnson to choose which club to join.

Spain midfielder Xabi Alonso has given Benitez a further problem. Alonso has antagonised his manager by discussing personal terms with Madrid without official permission. The player admitted that the pound’s fall in value against the euro was a factor in considering his future. “Of course we think about it,” Alonso said. “When you see your contract down by 30% you cannot be happy.”

The pound is worth €1.18, but when Alonso signed a five-year contract in June 2007 it was worth €1.48.

Dirk Kuyt Says His Success Is Down To A Faith Healer from Holland

Dirk Kuyt has revealed the secret behind his status as the all-action King of the Kop.

Anfield boss Rafa Benitez called Kuyt "Mr. Duracell" last season, because of the Dutchman's non-stop running.

Now Kuyt has revealed: "Before every home game I have a natural healer called Henk de Gier fly in from Holland. He does a session with me and makes sure I go on the pitch in top condition.

"And Henk is not the only one who helps me. For quite a few years I have been using a haptonomist [a touch therapist]. I like to invest in my fitness and well being.

"I played more than 60 matches last season.

"The reason I was able to do that is because I let these healers fly in.

"It started after I had a bad spell at Liverpool in 2008. I even lost my place in the Dutch national team.

"Ever since Henk has treated me, I have been running like a steam train.

"Henk has a special treatment for me. He calls it 'the shaker'. He gets rid of all my physical problems and he loosens my body.

"He takes away not only injuries, but also stress and headache. He has helped me enormously." Kuyt accepts that the pressure is mounting on Benitez's men to end the 20-year wait for a league title.

He said: "The whole club is absolutely desperate to win the championship.

"If we do win the league next season, the city of Liverpool will have a month-long party in the town. It is 18-all in the titles race between us and Manchester United. The fans need us to take the lead again.

"And I have this incredible feeling that we are on the eve of another massive season with great things to come.

"In my trophy cabinet I only have one medal - for winning the Dutch cup. That has to change here and now - with Liverpool. I have signed a new contract until 2012 and have no intention of playing for anybody else before that time.

"I have had other offers from clubs in Europe.

"But this is not the time to leave a team that I have helped to build - we must finish the job."

Chelsea Join Chase For Liverpool’s Xabi Alonso

Liverpool midfielder Xabi Alonso is reportedly attracting the interest of Carlo Ancelotti and Chelsea, according to the Sunday Mirror.

The unsettled Spanish midfielder has long been linked with a move away from Anfield, with Real Madrid in particular thought to be interested in acquiring the 27-year-old, and Chelsea now appear to have entered the hunt for his signature.

The recent speculation has recently led Alonso to insist he is happy at the club but, tellingly, he refused to commit his future to the Merseysiders, which the British tabloid claims has aroused the Blues’ interest.

The paper also claims that not only does manager Ancelotti admire Alonso greatly, but that he is keen to bring in younger midfielders to the club, and sees the Spaniard as the perfect choice.

The Blues are reportedly prepared to bid up to £18 million for Alonso, who is currently in South Africa with Spain taking part in the Confederations Cup.

Liverpool manager Rafael Benitez, meanwhile, has repeatedly insisted that Alonso is not for sale.

The Spaniard has also enjoyed a fairly fierce rivalry with Chelsea during his time on Merseyside and would undoubtedly be loath to see Alonso quit Anfield for Stamford Bridge.

Carlo Ancelotti Ready To Launch Audacious Bid

Chelsea are ready to test Liverpool's resolve with a £50million bid for Fernando Torres.

Carlo Ancelotti has already targeted Torres' Spain strike partner David Villa, offering Valencia £35m. Now the Blues boss is ready to make an audacious attempt to unite Villa and Torres at club level.

Liverpool manager Rafa Benitez will do all he can to block the move. But he is worried the huge sum offered by Chelsea could tempt American owners George Gillett and Tom Hicks.

Liverpool's true financial state will be revealed over the coming weeks and Benitez is beginning to fear the worst.

At the end of the season Benitez was hopeful of landing 27-year-old Villa. Now he not only has to face up to Chelsea signing Villa but also targeting Torres.

Villa's proposed move to Real Madrid has not gone through because Chelsea's bid is £4m higher and is preferred by debt- ridden Valencia.

Now Blues owner Roman Abramovich is prepared to take advantage of Liverpool's own money worries by making the sort of offer he hopes Gillett and Hicks will not be able to refuse.

It is understood a tentative inquiry was made by a third party in April about how much it would cost to prise Torres away from Anfield.

The message from Liverpool at the time was that there was no chance of Torres being sold. Then in May the 25-year-old striker signed an improved deal to 2013.

If necessary, Ancelotti and Abramovich will settle for just landing Villa. But if there is even an outside chance of snatching Torres away from Anfield, they will take it.

We Don't Need To Spend Big To Win The Title, Insists Torres

Fernando Torres says no amount of spending by Manchester United and Chelsea during the summer will stop Liverpool's relentless quest for the Premier League title.

Before Spain met host nation South Africa in their final group game of the Confederations Cup last night, Torres revealed just how focused he is on breaking United's stranglehold on the title and emulating the great Liverpool forwards of the past.

The club's own finances are under serious scrutiny, with only a month left for joint owners George Gillett and Tom Hicks to find new ways of servicing a £350million debt, and Torres realises Liverpool's spending power may not match that of their rivals.

The evidence of that comes with Chelsea hoping to steal Portsmouth and England right-back Glen Johnson from the grasp of Rafael Benitez, and Xabi Alonso being lured to Real Madrid.

But Torres shrugged off those fears. 'We don't have the same money as United or Chelsea but that is not a problem for us,' he said.

'We will try to win trophies with money or without it, it doesn't matter to us. 'In the past two years, United have been the strongest team in Europe and we had to fight against them. This year they have lost an important player, so maybe it is our time.

'When I was a kid I was always looking up to Atletico Madrid strikers but when I came to Liverpool I saw DVDs of Robbie Fowler and Kenny Dalglish. They are legends of Liverpool. One day I would like to be close to them.'

Keeping the Spanish contingent together at Anfield remains a critical priority, however, especially with United losing Cristiano Ronaldo and Carlos Tevez. 'If we can play together for a lot of years it would be fantastic,' said Torres.

'It makes us more complete as players. We have to keep all our good players.' His one major disappointment since joining Liverpool for a club record £20m in June 2007 has been lack of silverware.

'When I signed for Liverpool the main thing was to win trophies for them. It has been frustrating for me because for a club like Liverpool to go two years without a trophy is too long. But I think it's coming.'

Having already ruled out any chance of swapping Merseyside for Manchester, Torres had some more bad news both for United and Chelsea - forget buying David Villa. The Valencia striker, says Torres, has already made up his mind to stay in Spain rather than be lured by a big money move to the Premier League.

With his present club heavily in debt, Villa looks certain to move in the next few weeks but Torres says both United and Chelsea are likely to miss out on his services. While he has no doubt Ronaldo will be replaced with quality players at Old Trafford, Villa will not be one of them.

'I think he will play in Spain,' said Torres. 'It's his decision but I think Barcelona and Real Madrid are trying to sign him and he will join one of them. 'I think for his abilities and qualities he is better for the Spanish league - he scores over 25 goals every season. I'd obviously prefer it if he played in Spain if he doesn't come to Liverpool.'

Another concern, says Torres, is the tax system in Britain combined with the weak pound, but he says players like himself should be prepared to compromise and sacrifice their pockets for the experience of competing at the top level every week.

'When you are a top player, you will get a good contract,' he insists. 'You should not be scared to lose a little bit of money.'

Xabi Alonso Warns That Tax Will Drive Top Players Away

Even footballers have turned on the government. Xabi Alonso believes Gordon Brown's economic policies have weakened English football and that the Premier League's star players could be forced to the Continent to escape the weak pound and the incoming 50% tax rate.

Alonso is refusing to commit himself to Liverpool next season, with Real Madrid eager to to take him to the Bernabeu, and with Alonso estimating he is losing a third of his earnings he is edging closer to a return to Spain.

"Of course we footballers think about it; we are not stupid, we keep an eye on it," Alonso said. "When you see your contract down by 30 per cent you cannot be happy. I cannot do anything – it must be Gordon Brown or David Cameron.

“I think the weakness of the sterling is not helping the Premiership because for those competing and fighting against the European teams it is a big weak point. Hopefully over the next few months and years it will get back to what it was not so long ago."

Liverpool are determined to keep Alonso despite Real Madrid's very public interest, but having just published worrying financial results and with Rafael Benitez having to work with a restricted transfer budget, the Anfield club might be forced to sell, especially if the player wants to leave. Alonso, in South Africa with the Spain squad for the Confederations Cup, pointedly refused to answer questions about his future at Liverpool.

His Anfield colleague Fernando Torres admitted he was concerned about losing his Spain team-mates Alonso and Alvaro Arbeloa to La Liga but insisted that playing for a club with the traditions of Liverpool should count for more than a decline in your net income.

"I worry about losing my team-mates, of course," Torres said. "But when you play for a team like Liverpool you don't have to worry about that. You are a top player and you will get a good contract. You don't have to be scared to lose a little bit of money."

That depends on your definition of 'little'. Alonso signed a five-year contract with Liverpool in 2007 worth an estimated £65,000 a week. At the time there was €1.48 to the pound so he was on €96,200 per week but due to the weakness of the pound that has fallen to €76,700 a week. When the 50% tax rate comes in next April that will drop to €69,000 a week, so he could be losing €27,200 every week compared to what he was earning back in 2007. Overall, Alonso fears he could end up losing nearly £1.2 million per year.

Alonso is not the only player unhappy with the British tax system. Andrei Arshavin, of Arsenal, claimed he had an "unpleasant surprise" when he opened his first pay packet and saw how much he was paying in tax. The Russian international is now trying to renegotiate his £80,000 a week contract to ensure he has a higher net earnings.

Clubs across the country are concerned that foreign players are using the weak pound as an excuse to get a pay rise.

Arsene Wenger, the Arsenal manager, predicted back in April that "the domination of the Premier League will go" because of the government's tax policy and the fact that the United Kingdom has been hit particularly hard by the financial crisis. His prophecy seems to have been realised.

Accountants working with footballers and clubs are trying to come up with all sorts of ways of avoiding paying the top tax rate. One option being explored is paying players in interest-free loans which would attract a much lower tax rate. But ultimately, it seems the power base has shifted to the Continent.

That is particularly true of Spain, who can set up foreign players as 'company executives' who have a preferential 23 per cent tax rate for the first six years. David Beckham was on this kind of deal and Cristiano Ronaldo and Kaka will be on a similar scheme. Obviously this gives clubs like Real Madrid and Barcelona a real competitive advantage in the market.

Sam Rush, whose WMG agency look after Michael Owen and Steven Gerrard, believes English clubs will have to bear the brunt of the cost as foreign players will increasingly demand to have contracts net of tax.

"If clubs want to keep top players they are going to have to push the boundaries of their financial parameters," he said. "In Europe sums are offered net of tax. That's ultimately what's going to happen here in the UK."

Liverpool's Jermaine Pennant On Sunderland's Radar

Sunderland are planning to pounce for Liverpool's Jermaine Pennant during the close-season, according to a report in the British tabloid The Sun.

The 26-year-old's contract at Anfield is due to expire this summer, so the Mackems will be able to land him on a free-transfer.

The former England Under-21 international fell down the Reds' pecking order last season and was allowed to join Portsmouth on loan in January, however, the south coast club have decided not to make his switch permanent.

Newly-appointed Black Cats manager Steve Bruce is thought to be an admirer of the right-sided winger having signed him from Arsenal for Birmingham City in 2005.

It is claimed that Madrid rivals Atletico and Real are also interested in acquiring Pennant's services, but he is apparently reluctant to move abroad.

It is thought that Sunderland will offer him a three-year contract worth around £65,000-a-week.