THE ASSOCIATED PRESS

Manchester City recorded its biggest victory over Liverpool in 73 years on Monday, winning 3-0 in the Premier League as the owner who funded the team's massive spending spree watched his investment live for the first time.

Gareth Barry put Man City ahead in the 13th minute at Eastlands after being set up by fellow England midfielder James Milner, whose arrival last week took the team's spending to about US$180 million since it finished fifth last season.

City led 2-0 when Liverpool goalkeeper Pepe Reina failed to stop Micah Richards' header from a corner in the 52nd that Carlos Tevez tried to divert in.

Tevez converted a penalty in the 68th after Martin Skrtel had fouled Adam Johnson.

Roberto Mancini's side now has four points from two matches and the win came at a good time, with Abu Dhabi owner Sheikh Mansour attending his first match since buying the club in September 2008 and subsequently spending huge sums on players.

"It's the first time the Sheikh has been here and he witnessed a fantastic night," Mancini said. "I was pleased to show him a good game, that was important. The mentality was the most important thing for us, not the formation or anything else, the mentality can win us games.

"We need time to gel and improve because we were missing four or five important players. But the team played with a good mentality. If they play with a good mentality I think we can beat every team."

In stark contrast, Liverpool is searching for new owners to clear its debts and strengthen the squad. Liverpool was without Javier Mascherano, whom coach Roy Hodgson said was not in the right frame of mind to play because he wants to join Barcelona.

Liverpool, which last won the title in 1990, appears no closer to winning championship No. 19.

The visitors created one first-half chance but Steven Gerrard fired wide after being set up by Fernando Torres. City goalkeeper Joe Hart thwarted Torres in the second half with a superb left-handed save.

"I didn't think we were under the cosh to the extent 3-0 might suggest," Hodgson said. "But we defended poorly for the goals and they took their chances well, and I thought they played solidly and strongly throughout.

"They took charge of the game and we were always fighting to get back into it. You just have to accept on a night like tonight that we were unable to produce the level of performance necessary to get a good result."

Liverpool has one point after drawing with Arsenal last week. Liverpool is targeting a return to the four Champions League places after last year's seventh-place finish.