Liverpool's champs league exit: The Financial implication: Part 2

European clubs participating in champs league earn a combination of participation fees and income from TV rights, the latter contributing a larger chunk.

Here is a breakdown of how much participation money is at stake for every Champions League game. This is just the participation fees.

Group Stage:

-Reaching group stage: €3.8m

-Participating in group stage: €550k per match, x6 matches = €3.3m

So that’s €7.1m guaranteed. Now the results of each group game also matter as below:

-For a win: €800k

-For a draw: €400k

Knockout Stage:

-Playing in Round of 16: €3m

-Playing in Quarters: €3.3m

-Playing in Semis: €4m

-Playing in Final: €5.2m

-Champions League winners: €9m

As I had mentioned earlier, another chunk comes from the market pool (TV audience size in home country of the club). These figures are even higher than the participation fees and would be even more skewed for EPL sides owing to the enormous TV audience.

Here’s how UEFA puts it: "In addition to these sums, the clubs receive a share of revenue fixed in accordance with the value of the TV market of the country they represent. If an association has more than one representative, the amount received by each club depends on its position in the national championship in the previous season and the number of matches played in the current season’s Champions League."

Last night ESPN Sportscenter put things in perspective when they mentioned that overall loss for Liverpool could be anywhere in the region of 25-30 million if they fail to qualify next year. The figure suggests that Rafa and the owners need to put their best foot forward to finish in top 4 this season else the club would in real bad shape. If they fail to qualify for next year they would potentially lose a lot of top players including Torres and maybe even Gerrard.

Source: http://www.theoffside.com/tournaments/champions-league/uefa-champions-league-200910-prize-money.html