Liverpool will break bank in January

Liverpool boss Roy Hodgson plans to make new signings in the January transfer window.

New Reds owners New England Sports Ventures are set to back Hodgson with funds in the new year to bolster the squad at Anfield following their takeover of the club earlier this month.

Hodgson is confident the new owners will give him the green light to move for the best players, but insists he will not spend money for the sake of it.

"If we want the right quality, we have got to be prepared to pay the right price," Hodgson told the club's official website.

"The owners know that perfectly well. We have got to make certain that if we go out and spend £20m, we are getting a £20m player.

"We want to be attracting the players that Barcelona, Real Madrid and Inter are chasing. It would be nice to think that we can shop at a high level.

"I'm like all managers in that I'm wary of the January transfer window. I think it can be dangerous as clubs try to correct mistakes.

"But, having said that, we are going to very interested in trying to improve our squad in January. There is no question about that. I am sure we will sign players."

Hodgson added: "What I would hope to do is get this group of players playing well enough so we don't need to panic.

"Then I can say to the owners, 'If we are going to spend a lot of money, let's get the right man.'

"I don't want to spend half the money that might be available on someone for the sake of buying when the player we actually want might not be available until the summer.

"The lucky thing is that we are rebuilding around several top-class players. We have got Reina, Carragher, Gerrard, Torres, Kuyt - it's not as if we are rebuilding from nothing."

Hodgson also aimed a swipe at some of former boss Rafa Benitez's signings, claiming a number of players have not proved value for money.

"I think you can pay an awful lot of money for poor players and you can pay not very much money for very good ones - it is all to do with how good your scouting and your eye is," he added.

"There are a lot of things here that the club has got to get right. We have got a lot more expensive failures on our list than good players that we have brought in for next to nothing.

"Free transfers don't necessarily mean that you have got a bargain. My experience of them has been very mixed. You need to be sure that the player you get can do the job you want from him."