Through the 1970's and 1980's, the First Division had strong competition. Many teams could win the title every year, and the rivalries were powerful. Villa and Forest won the European Cup. Everton, Arsenal, Leeds, Derby, Forest all won the league. Once the money from the Premier Leageu began to separate the men from the boys in terms of buying power, the number of teams capable of winning the league dwindled. If you go back to the 1980's, King Kenny assembled an incredible squad to replace Rush when he went to Italy. However, he had trouble figuring out how to continue the trend, and his purchases after 1988-89 weren't very good, and some of the sales at that time and later were bad decisions in retrospect. Souey then dropped the ball altogether. Thus it wasn't necessarily that Ferguson knocked Liverpool "off their perch" per se, as much as Liverpool slid off by themselves. Summary: The "players out" weren't being replaced by equally good "players in", so the Liverpool standards dropped off sharply. Simultaneously, the competition for the top spot withered. Examples: Peter Beardsely-type players go. Jimmy Carter-type players come in. Injuries slow down John Barnes. Don Hutchison comes in. Note: Jimmy and Don are nice guys, they just weren't Peter or John.