YOU HAVE to go back a long time to find the last genuine three-way race for the English title, the kind which the neutrals love and which, for once, would help justify the hype machine's presentation of the Premiership as the most exciting league in the world. Well, don't look now, but, as far as the 2007-08 season is concerned, the ingredients are all there. This could be the year when Liverpool seriously challenge Chelsea and Manchester United for the title. If that happens, most likely, it will be a result of three trends: Liverpool improving, Chelsea going backward and United focusing on Europe while perhaps going a bit over the top in terms of overhauling their squad.

Starting with the champions: on paper, their transfers have been close to perfect. They've not only strengthened, they've made their squad younger. Anderson, 19, and Nani, 20, look like ready-made long-term replacements for Paul Scholes and Ryan Giggs, who'll be 33 and 34 respectively in November. Carlos Tevez, 23, is the kind of once-in-a-generation superstar who ordinarily breaks the bank and the fact that he already has a season of Premiership football under his belt is a bonus, as is the fact that, because of the whole MSI affair, United won't be shelling out too much money up front (and, in the unlikely event that he flops, could theoretically cut him loose). Then, of course, there's Owen Hargreaves, still just 26 but with 39 England caps, to stiffen the midfield. Throw in the fact that Wayne Rooney and Cristiano Ronaldo (just 21 and 22 respectively) are a year older and wiser and it's hard to see the title going anywhere but Old Trafford.

Until, of course, you take a closer look. Anderson made just 11 starts in 18 months at Porto, a function of both injuries and the fact that, despite his skills, he remains raw. Hargreaves meanwhile continues to be one of the most injury-prone players in the game: in the past six seasons he has started fewer than half of Bayern's matches. Tevez and Rooney are similar in terms of build and style, it remains to be seen whether they can produce an effective partnership. If they do, it will certainly be a non-traditional one, in the vein foreshadowed by Carlos Queiroz, who envisaged a carousel of free-flowing virtuosos which would include both strikers as well as some combination of Giggs, Scholes, Nani and Ronaldo.

Heady stuff and beautiful to look at, but untested domestically. In fact, it looks as if it's tailor-made for Europe (or, at least, Queiroz's vision of what works in European football), which would certainly suggest that the Champions League, rather than a Premiership title defence is Sir Alex's priority. But, Europe aside, the absence of a strong central striker - with Alan Smith sold to Newcastle, the closest they come is Louis Saha, another who spent much of last year on the treatment table - could yet haunt them domestically.

Ask Jose Mourinho and he would probably tell you that, had it not been for injuries, misfortune and, perhaps, some meddling from above, Chelsea would have walked away with last year's crown as well.

Maybe so, but this year shapes up to be different. Despite bringing in five players, only one, Florent Malouda, looks capable of fighting for a place in the starting eleven. And even then the Frenchman, like Steve Sidwell, will be competing for playing time in what is already Chelsea's most crowded area of the pitch, given that John Obi Mikel, Arjen Robben - if he stays - and Joe Cole will all be trying to unseat last season's regulars. Mourinho has always said that he likes small squads, which could suggest that Robben and perhaps Michael Ballack might be on their way.

If that's the case, it only underlines the fact that things aren't right at Chelsea. A club with their resources should have wrapped up their transfers by mid-July. Instead there is still uncertainty about the squad, just as there is uncertainty over Mourinho's future, and his relationship with Peter Kenyon and Avram Grant, the Israeli brought in as technical director. With these questions hovering over Stamford Bridge and Old Trafford, one is tempted to look to Liverpool to break their eighteen-year wait for an English title. On paper at least, the club have upgraded the areas most in need - the flanks and up front. Fernando Torres provides size, strength and goals. He's been around for so long it's easy to forget that he's still just 23. He has notched 15 or more league goals in three of the past four seasons and, just as important, he's extraordinarily durable, having missed just four league starts in the past three years. He gives Benitez options and is versatile enough to partner both Dirk Kuyt and Peter Crouch.

Liverpool lacked creativity in possession last season and, to address that, Benitez has brought in a trio of attacking players who can either provide width in midfield or chip in as second strikers: Ryan Babel, Yossi Benayoun and Andriy Voronin. Babel, the most expensive of the three at £11.5 million, is the kind of unselfish high-energy player that managers love. Benayoun was instrumental in West Ham's excellent 2005-06 campaign before struggling amidst last season's controversy and his signing appears to be a calculated risk. As for Voronin, his arrival did not make waves, but the Ukrainian is a smart, versatile player who can address Benitez' tactical needs. Add in Lucas, the Brazilian player of the season in 2006 at Gremio, and Javier Mascherano, who is finally settled after his Upton Park nightmare and six months at Anfield, and you can see just why there could finally be a red dawn on Merseyside.

Thierry Henry's departure coupled with the ownership situation and Arsene Wenger's refusal to commit beyond next summer means that Arsenal are a notch below the other three clubs. Eduardo Da Silva won't fill Henry's shoes, but he will provide something different, a genuine in-the-box striker, something the Gunners haven't had for a long time. Wenger has told Cesc Fabregas that this is "his team": a tall order for a player who turned 20 three months ago. With a fit Robin Van Persie and the many gifted youngsters continuing to improve, a Champions League spot should be within their grasp, but it's hard to go much beyond that.

On the other hand, it doesn't look like the other pretenders have done much to close the gap.

Tottenham have once again spent big without addressing their most obvious need, a left-sided midfielder and Sam Allardyce's rebuilding job at Newcastle looks to be a long one. Wealthy new owners have allowed Manchester City and West Ham to go on spending sprees and Martin O'Neill's dealings at Aston Villa are, at best, curious. The former Celtic boss likes to do things his way and his track record is such that he has earned the right to do so. But one does have to wonder what he sees in the likes of Marlon Harewood.