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The influx of new faces in 1999 and 2000 helped propel the Reds to a trophy treble in 2001, but the missteps with the 2002 intake ultimately proved the beginning of the end for the Frenchman.
So Murphy knows from experience the pitfalls that Liverpool must sidestep during what is likely to be a testing few months.
"When you get players in, you are looking at two aspects - the footballing quality and the mentality," he says exclusively to the ECHO when speaking on behalf of NewBettingSites.uk.
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"Are they good enough to adapt to play at one of the biggest clubs in the world where you are expected to win every week?
"My situation was that I always felt I had to kick on again otherwise I was going to be replaced.
Anelka was special and on a different level to Diouf."
Murphy adds: "The recipe for success is firstly coming into a good group of players who are already confident and playing well, and also a good group who are welcoming and not closed off and full of cliques.
"You have to get everybody together.
But I think because there is so much movement of players these days, there isn't the same possibility of hostility to new signings.
Players are welcoming.
"I don't see any problems at Liverpool regards integrating players.
But it's made more sense now, looking at the situation of players who have left, that there was inevitably going to be business done.
"But it is exciting.
But with that comes an understanding that when you integrate new signings, it's not always going to be perfect.
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"Slot has already mentioned that although last season he was coming into a situation where he was replacing Klopp, the squad was settled and everyone knew each other.