This is the question Liverpool’s American owners will be asking, as Liverpool languish in mid-table in the Premiership.
Liverpool’s success in this year’s domestic cup competitions has papered over the cracks of their failings in the league, but the league table does not lie.
Many people thought Dalglish would only survive if he won the FA Cup because Liverpool’s league form has been so poor.
But Dalglish has won Liverpool their first trophy in 6 years when he won the Carling Cup earlier this year, and for Liverpool to get back to winning trophies is very important.
One season in charge is never long enough for any manager at any club and the American owners don’t want to make Liverpool into another “Chelsea” who hire and fire managers after a few bad results.
Dalglish has “legendary” status at Anfield and he is so committed to this club that he loves, and he will be working harder than anyone to put results right and improve this club.
But for the first time in his Liverpool career there are sections of the Anfield faithful criticising Dalglish and his managerial skills, especially after losing the FA Cup against Chelsea.
Dalglish has spent an awful lot of money on players that have not produced enough for his team and this gives critics the most ammunition to fire at him.
Andy Carroll cost the most money and his lack of goals has meant Dalglish has constantly been questioned of his worth to the club.
I’m sure Dalglish would have expected more from the players he has brought in, players like Adam, Downing, Enrique and Jordan Henderson, but sometimes it can take players time to adapt to a new club, especially a club as big as Liverpool.
In recent games Andy Carroll has looked more like the player we saw at Newcastle as his cameo role in the FA Cup final proved, so maybe he that game could be the making of the big striker in such a disappointing day for the club.
But with Liverpool 37 points behind leaders Manchester City in the Premiership, how can Dalglish bridge that gap next season.
It will be a must for Liverpool to qualify for the Champions League at the end of next season or there will be a reality that Liverpool will become a perennial mid-table club.
Competition is so much tougher now to gain a top four place with Manchester City, Manchester United, Arsenal, Chelsea, Tottenham and even Newcastle all fighting it out this season, so next season will not be any easier.
But the American owners need to decide if Dalglish is the right man to take them forward. There is no doubt that Dalglish has brought unity to the club and the supporters since taking over, but can Dalglish take the club to the next level, it will be a very important summer at Anfield this year before the new season begins.
It looks like Liverpool will have to spend a lot of money too, to improve the side, but will the Americans be prepared to part with as much cash as they did last year to not see much reward for their investment.
Time will tell what happens at Anfield, but the American owners should remember to do things the “Liverpool Way” and with Dalglish in charge, nobody knows it better.