Under-fire boss Roy Hodgson has accepted Liverpool find themselves in a relegation battle after another shock home defeat. After the embarrassing Carling Cup loss to Northampton, the Reds went down 2-1 to Premier League newcomers Blackpool to sit in the top-flight relegation zone heading into the international break. Hodgson admits Liverpool's start to the campaign is unacceptable and conceded they could find themselves in a survival battle this season. "Things are looking really, really bleak. It has been said that if you are in the bottom three, you are in a relegation fight, and I would have to go along with that," admitted Hodgson. "But I'm not thinking too much about relegation with 31 games left. My concerns are that we are not playing to our full potential, or are only doing it in periods. In the first half we were punished for a lacklustre display. "We had the ball as much as they did but didn't do anywhere near enough with it to satisfy my demands, the club's demands or the players' demands on themselves." The Kop chanted the name of Liverpool legend Kenny Dalglish, who was overlooked for a return to the manager's job this summer, towards the end of the game and Hodgson can understand the fans' frustrations. He said: "The fans are entitled to voice their frustrations, they are a frustrated group at the moment. "I am the one responsible because I am the team manager. When the team does badly then the criticism is going to fall my way and I have to accept it." "Their great result is our nightmare result. It is a very bad day. "At the moment things look bleak and really bad and it is difficult for me to put a bright face upon it."