I agree that they'll lose players without CL.
They look a half decent outfit capable of upping their game for the big matches, but (as they have done for the last few seasons) not able to perform consistently well enough to kill off the lesser teams.
IF they finish top 6 this year, and do so strongly, then they might be able to persuade players that they're moving in a positive direction, but anything less than 6th will no be convincing. Even with 5th or 6th, it might not be enough for some who'll feel they've given Liverpool long enough.
All of that said, Liverpool are still a big enough name to attract other players in, providing they're seen to be on the up.
Unlike City, Liverpool can virtually guarantee a first team place for a top player, which will be a factor to many players, but Liverpool will be shopping in the 'best of the rest' aisle (after the top clubs have had their pickings).