According to The TA, Liverpool are in no hurry to renew McAllister's contract, as the club wants to observe his performance first.

At the heated pre-match press conference before the game against Atletico Madrid, McAllister focused on the fact that he hadn't received a new contract this summer. He then proved his point with a brilliant goal in Liverpool's 2-1 victory over the Spanish team.

In a media interview, the Argentine international emphasized his deep love for the club, and his excitement when he rushed to the stands to "Kop" in celebration spoke volumes.

This marks the 27-year-old's third consecutive start under new manager Raul Iraola—he was a substitute in the opening Premier League match against Newcastle. This is at least partly due to his participation in the extended World Cup campaign, which resulted in a late return to the team before the season.

He plays as the deepest midfielder in Iraola's system, performing well in all three matches and improving the team's balance. Due to the lack of preseason preparation and the demands of the position, he often shows signs of fatigue in the second half, but in every game, his performance before the 60th minute has been convincing.

But this doesn't mean Liverpool's stance on his contract this summer was wrong, nor should the club approach McAllister with a new contract tomorrow.

Contract sagas at Anfield are nothing new, especially in recent years. Virgil van Dijk, Mohamed Salah, Trent Alexander-Arnold, and Mateo Konaté have all been embroiled in high-profile contract renewal disputes. It was initially thought that the topic would quiet down for a while before the situation with Van Dijk and Alisson Becker escalated—both contracts expiring at the end of the season—but it has once again become a focal point.

McAllister has confirmed that he had the option to leave during the recent transfer window. He told reporters that he was "very upset" that the club was "unable" to offer him a new contract. His midfield partners, Hrafinbech and Szoboszlai, signed new contracts in March and July respectively. All three are key figures in Liverpool's title-winning season of 2024-25, so it's not surprising that McAllister felt hurt seeing the other two rewarded while he didn't.

However, the context is equally important. It's easy to understand why Liverpool were reluctant to offer the midfielder a new contract after last season. McAllister isn't the only player whose form has declined; players like Hrafinbech haven't lived up to their standards either, but his decline is more significant and worrying. He's also been compared to former Liverpool midfielder Fabinho, who was almost completely out of form in the 2022-23 season.

There are many factors contributing to this. The midfielder, like his teammates, is still processing Jota's passing. McAllister was close to his departed South American compatriots Nuñez and Luis Diaz, and his preseason preparations were disrupted by injury. Although he often downplayed the impact of the injury, he has consistently failed to regain his form or maintain consistency. Furthermore, the ineffective pressing by the players in front of him, forcing him to cover large areas of space, coupled with his substantial playing time accumulated for club and country over the past few seasons, have clearly all affected his performance.

Despite a struggling performance last season, former manager Sloot continued to select him, demonstrating the impact he can have. With Iraola taking over, the midfield duo faced increased responsibilities, leading to questions about McAllister's suitability for the role. However, based on a relatively small sample size, he has silenced these doubts with his strong performances.

In a post-match interview after Liverpool's 2-0 victory over Ipswich Town, Iraola told Sky Sports: "McAllister is a very intelligent player, he has a very good understanding of positioning. He played really well today."

This summer, McAllister played a key role in Argentina's run to the World Cup final. He seems to be getting closer to the player Liverpool fans saw in him during his first two seasons after joining from Brighton in 2023. He's carried that momentum into the new season, and although still refining his game, he has already formed a good partnership with Szoboszlai.

Szoboszlai told reporters after the victory against Atletico Madrid: "I really enjoy playing with McCa. We know each other so well that we don't even need to talk. You look at someone and he knows what you want to do, and I know exactly what he wants to do—I think that helps the team too."

There are many reasons for issuing new contracts. Clubs use them to reward players for excellent performance, usually with higher compensation to reflect their importance to the team. At the same time, it's also to maintain the player's value, preventing the team from having to sell them for a low price or let them leave as free agents.

The new contract also concerns what the player will do next. The club hopes he can maintain his current level and ideally continue to improve. Based on last season's performance, it's difficult for Liverpool to be certain that McAllister will shake off his poor season and return to his usual form.

Long-term planning also needs to be considered. Hrafinbergh will be 29 when his new contract expires. Szoboszlai will be 31. McAllister's current contract also expires when he is 29. This is not exactly the same as giving Henderson, who is 31, a new four-year contract in 2021, but the last thing Liverpool wants to do is offer a new contract to a player whose form is declining.

The only good news for McAllister and Liverpool is that he's started the season looking more like himself. Liverpool's inaction this summer has effectively challenged him: prove he deserves a new contract.

From the club's perspective, this stance is correct. Three good games, plus a winning goal in the Champions League group stage, are not enough to change this judgment—don't forget, McAllister also scored a winning goal against Real Madrid in the league last season. However, if this revitalized and energetic midfield continues to perform like this, Liverpool will have to reconsider.

McAllister said: "Maybe they'll change their minds (about the new contract). I think it depends on how I perform over the years. I won't change my mind. This has been a very successful period in my life. I don't think I have to prove anything, but of course, I have to show the level I can play at."