The issue is about time. If he doesn't sign quickly, we've got a chance to swoop in no matter how advanced the talk with Liverpool are. But the longer it goes on, the longer we have to agree terms with Madrid.
I understand that Madrid would rather sell to Liverpool for a couple of reasons but in moves like this, the player generally decides where he wants to go. I'm not saying it's impossible for him to choose Liverpool over us, but it's unlikely. In the same way, if Milan, Man Utd, Man City or whoever are interested, we fall further back in the pile.
I think there's enough noise to suggest we are actually interested. But lets hope Liverpool don't have him wrapped up as some are claiming. Now that the Van Persie sale is complete, we've got space and money for a new player but my gut feeling is also that he is set on Liverpool by now.