I think that's a big part yes, he changed the style of player and the types of players signed and the result is there for all to see, our football isn't as good or as effective, we're predictable and seem to lack any real leaders or players who will take the game by the scruff of the neck or change the flow when things aren't working. Tactictally he's also been left wanting, this may not have been so relevant in the past as he had players that organised for him, but nowadays his lack of tactical nous is badly exposed.
Liverpool have pretty much shown you can compete, OK so they've played less matches, but you'll probably find they sign players in the summer to legislate for CL football.