Liverpool have paid "far too much" in order to secure the signing of Sadio Mane from Southampton, according to Phil Thompson.
The 24-year-old winger has moved to Anfield for an initial fee reported to be in the region of £34million and agreed a five-year contract.
Thompson - who won three European Cups as a player with Liverpool as well as later serving as assistant manager and caretaker boss - disagrees with Manes' high price-tag.
"I think we have paid far too much for him," Thompson said to Sky Sports.
"Perhaps it is because of the money coming into the Premier League. Just look at Crystal Palace reportedly making a £31m bid for Michy Batshuayi.
"It is the same with Manchester United stumping up £30m for Henrikh Mkhitaryan, a 27-year-old who doesn't score as much as Mane."
However, Thompson is in no doubt that Mane has the ideal skillset to improve Liverpool's squad as the club add to the arrivals of Marko Grujic, Loris Karius and Joel Matip.
He added: "I see it as an absolutely pivotal signing, one that was needed as the other attacking midfielders are more technical players and don't really have the pace.
"Philippe Coutinho, Adam Lallana and Roberto Firmino are all quite similar so I'm not surprised Jurgen Klopp has looked to add something different - a player that gives them a threat on the counter-attack and also adds goals.
"Daniel Sturridge also seems to have lost his pace a bit, probably due to the amount of injuries, which we saw with Michael Owen, so there's only really Divock Origi who can stretch teams."
Liverpool finished a disappointing eighth in the Premier League last season as well as losing out in finals of the Europa League and League Cup.