Spurs challenged for the title the last two years, more than they did when Bale was there. If Liverpool reinvest the money wisely they could do the same; the question is whether they've got deals lined up ready to go in time for 31st August...
Depends how quickly they can spend the £120m they'll get for him; if they've got any sense they'll have been lining up potential replacements. They could probably sort their defence out with that money, which overall could leave them better than they are now...