According to the British media Benitez was paid around 3.0 million pounds ($4.42 million) although he had agreed on a five-year contract in March last year. The terms of that deal stated that the Spaniard was entitled to a severance package of approximately 16.0 million pounds, but with Liverpool almost facing debt, the club would have struggled to pay him off in full.

Rafael Benitez ex-Liverpool Manager

A compromise was reached and the 50-year-old can now look ahead at landing a job at Inter Milan, recently vacated by Jose Mourinho.

Liverpool chairman Martin Broughton said in a statement on the club website (www.liverpoolfc.tv):

“Rafa will forever be part of Liverpool folklore after bringing home the Champions League following the epic final in Istanbul but after a disappointing season both parties felt a fresh start would be best for all concerned,”

Benitez added:

“It is very sad for me to announce that I will no longer be manager of Liverpool FC. I would like to thank all of the staff and players for their efforts.”

This parting of ways wasn’t really surprising after they finished seventh in the Premier League this season, their lowest position since 1999.

Rafa had a successful season 2004-05 and after Liverpool finished second to Manchester United in 2008-09 only four points behind, The Reds were expected to put in a tough challenge this season. However, with the departure of Xavi Alonso and a huge string of injuries, the club fell way behind.

Liverpool also failed to advance from the group stages of the Champions League and even missed qualifying for the Champions League next season.

The Reds showed tremendous attacking force and overturned a 2-1 deficit from the first leg of their quarter-final tie.

Fernando Torres finished with two, while Dirk Kuyt and Lucas scored one each in a fantasic match night at Anfield.

Liverpool's Lucas goes past Julio Cesar of Benfica to score his team's second goal during the UEFA Europa League Quarter Final second leg match between Liverpool and Benfica at Anfield on April 8, 2010.

The performance was completely in contrast to Liverpool’s game in the Barclays Premier League.

The controversies just can’t stay under the carpet for Benitez and Liverpool! Riera recently spoke on Radio Marca, he commented:

“When the coach says nothing to you and you are well, with no physical problems and training well, you cannot help but think it must be something personal.”

He added that he felt Liverpool were a “sinking ship” after a poor season which has seen early exits from the title race, Champions League and FA Cup.

These comments led to his suspension from training and he also missed the game against United.

Rafa has sought to get rid of the player by selling him off to a club in Russia. According to a report in the Daily Mail, Benitez wants to take advantage of Russia’s extended transfer deadline (April 8th) to try and sell him to Spartak Moscow. This would help him recoup part of or the complete £6 million he paid to sign Riera from Espanyol.

The Reds have allowed late goals in both their Champions League matches against Lyon and now Fiorentina, which has damaged their chances of qualifying to the knockout stage. Both Lyon and Fiorentina have made it to the next round.
In the post match conference Rafael Benitez said:

“The result and the way it happened just about sums up our Champions League campaign. Another last minute goal, and we are disappointed with that for the third time in this group. Now we must be ready for the next game at home to Arsenal on Sunday. We worked so hard, we had chances, so they are the only positive that we can take from the game.”

Although there were positives that Liverpool can take from this match, Torres returned from a groin injury and Aquiliani made his full debut for the club.

Benitez commented:

“Aquilani showed his quality, his touch was good. His vision and passing were good, but obviously he will have to work on his match fitness.”

“Everyone is available for Sunday, if he trains well he could well be involved against Arsenal. We are still trying to see the positives, we are playing better and we must now must take that into a very important game. It is the beginning of a new season for us now, I hope.”

Liverpool have also learnt that they will not be seeded in the Europa League next season.

“We will not be seeded in the Europa League, we must cope with that and be strong to handle what ever comes our way now,”

Benitez added.

However, it remains to be seen if absence of Ronaldo has any effect on the club’s performance in tight matches. Nani and Antonio Valencia did a good job providing a number of passes upfront. In other news, Rio Ferdinand is likely to be out for at least two weeks with a thigh injury. “I would imagine Rio will be out for two weeks,” said Ferguson. Ferdinand will undergo a scan and also casts a shadow of doubt for England’s World Cup qualifier against Croatia on September 9th at Wembley

Liverpool on the other hand performed poorly but managed a goal out of the match. The Reds cried foul when a penalty wasn’t awarded for a shoulder challenge by Assou-Ekotto on substitute Voronin, late in the second half. Minutes later, Yossi Benayoun’s cross struck Assou-Ekotto on the arm but the referee felt it was ball to hand and waved away any further appeals. Liverpool had already been awarded a penalty earlier in the match which was successfully converted by Steven Gerrard, this helped cancel out the Tottenham lead. Rafael Benitez was quoted saying “The decisions were very poor. Everyone could see the first one was a penalty. The second one was handball but we knew it would not be a penalty.”