Dannt Murphy says Liverpool are paying the price for poor transfer market investments.
In the end Shakhtar Donetsk scared Liverpool off. The Ukrainian side declared a £53 million price tag for the Brazilian, and retained his services.
Liverpool made two offers for the striker, reported SkySports, but did not return with a third after learning of Shakhtar's asking price.
There were no alternative buys for Liverpool up front as a result, with manager Jurgen Klopp electing not to buy for the sake of it.
Former Reds striker Danny Murphy told The BBC that Liverpool's inability to get the deal done was a direct result of previous transfer market mistakes.
He said: "It's unfortunate for Liverpool that the Alex Teixeira move didn't work out, because he's a super talent. But Liverpool have created their own problems in that regard, because they've overspent on players in the past."
Liverpool still remember the £35 million spent on Andy Carroll back in 2011 under Kenny Dalglish, while more recently buys under Brendan Rodgers have failed to pan out, most notably Lazar Markovic at £25 million, and Christian Benteke at £32 million already looks lost.
There may be a more prudent reason for Liverpool not being so willing to splash out £53 million - that being because they simply believe he will be cheaper in the summer, when more options will be available, and decided not to be held to ransom.