Where is the money coming from?

We heard that many European soccer teams spend millions of dollars for signing new players. But how can they afford it? Are they going into debt or is the soccer business that profitable?

As in many other professional sports, a team can make a lot of money by selling tickets, jerseys and so on but I would like to focus on the amount of money that is up for grabs by participating in a tournament. First of all you have to qualify but once you're in it's almost like winning the lottery! There are lots of tournaments but I want to put your attention to the UEFA Champions League. After qualifying the team automatically gets 3 million Euros. For participating in the group stage you get another 2.4 million. For every win you receive 600,000 and for a tie 300,000. Each quarter finalist receives 2.5 million, 3 million for the semi-finalists and the winner get to take home 7 million Euros.

Source: http://en.wikipedia.org/wiki/UEFA_Champions_League#Prize_money