Klopp was accused of making “xenophobic” comments when he suggested City, Newcastle and Paris Saint-Germain have an unfair advantage,
"The reality is Manchester City can be in contention for any player in the world and clubs like Liverpool can’t, which is all Klopp was saying,” began Molby, speaking ahead of his theatre tour alongside fellow Liverpool legends Ronnie Whelan and Steve McMahon across Ireland next year.
"You have to say that City do some smart work in the transfer market and we saw that with Erling Haaland last summer, but it is easier to do that when you have unlimited finances to spend on players.
"They are not top of the table at the moment, but I still think Manchester City will win the title. They need to have a massive injury problem to stop them, but they have enough money to cover all bases.
“It appears that football cannot come up with a solution to stop these owners taking over the game and you need to find a way to compete with these clubs, however unlikely that may be.
"Liverpool have done an amazing job challenging City over the last five years, but the way they do things in the transfer market makes it almost impossible to maintain that when you opponent signs one of the best players in the world every summer.
"Klopp and Liverpool deserve all the credit for the way they have tried to challenge City and it is even more satisfying when you can compete against a team that has advantages you will never have.
"What we have seen this season is Liverpool’s top players losing some of their form and City getting stronger and stronger.
"You have to give credit to Arsenal as well because they have started the season in good form, but it's hard to see how anyone can stop Manchester City for the foreseeable future.”
Klopp came under fire from some sections of the Liverpool faithful after his side’s troubled start to the season, but last Sunday's win against Manchester City reminded the doubters that their manager remains a formidable force at the top of the game.
So much so that Molby suggests most Liverpool fans would rather take extreme measures than lose their leader.
"The way the game is now, some fans on Twitter or social media look at a few weeks of bad results and jump to conclusions and it was crazy to see some fans doing that with Klopp," added Molby.
"What I hear from Liverpool fans is very different. They would rather get rid of every player in the team than lose Klopp, as his manager has brought them so much joy in recent years.
"We saw Aston Villa get rid of Steven Gerrard the other night and that’s the way this game is now. One or two poor results and you are under pressure.
"What we see with Jurgen Klopp, Pep Guardiola at Man City and now Mikel Arteta at Arsenal is managers need time to find their feet and get their ideas across.
"It is easy to pull the trigger after a few bad results and Arsenal's board could certainly have done that on a few occasions with Arteta.
"Instead, they shut out the noise of the critics, stood by their man and now the rewards are coming.
"At the end of this season, I still believe Klopp and Liverpool will be in the mix for the Champions League, even if they have shown some vulnerabilities this season.
"This team and this manager have been there and done it, which counts for a lot when the pressure is applied at the back end of the season.
"I’d always fancy Liverpool in cup competitions. They won two of them last season and could have added the Champions League as well.
"When you get to the knock-out stages of the Champions League, those big nights at Anfield are special and I’d expect Liverpool to be in the mix for that trophy again this season.”
Jan Molby will be touring Ireland with fellow Liverpool legends Ronnie Whelan and Jan Molby next May. Tickets are available now.