#2 He may be available on the cheap

In the current climate, a player of Sterling’s quality, who is just 23 years old, would cost an awful lot of money. However, in this instance, this may not be the case.
Because talks have broken down between Sterling and Manchester City regarding a new contract, as things stand, he will be free to leave the club for nothing in less than two years’ time.
Man City may not be prepared to let this happen, so may wish to cash in on Sterling at some point over the next 18 months, in the knowledge that they will be able to bring in a replacement with the money they sell him for.
Real Madrid does have money to spend, given the money from the sale of Cristiano Ronaldo, and the fact they bring in millions of pounds every year from commercial deals.