How Much Will Real Madrid Have to Pay Xabi Alonso After Mid-season Sack

Despite sacking Xabi Alonso just seven months into his tenure, Real Madrid will reportedly not have to pay a hefty severance bonus.

That is thanks to a clever clause Real Madrid included in Xabi Alonso’s contract when signing him from Bayer Leverkusen in June.

Alonso’s compatriot and former Liverpool and Real Madrid teammate, Alvaro Arbeloa, has replaced him at the helm. He is currently serving as a caretaker manager, but he could earn a permanent deal if Arbeloa’s Real Madrid tactics pay off.

The club’s hierarchy is expected to closely monitor results and performances before committing to a long-term appointment.

Real Madrid have shortlisted three ex-Premier League managers who could take the reins if Arbeloa is not retained.

How Much Real Madrid Will Have to Pay Xabi Alonso After Sacking

Real Madrid reportedly paid between €12 and €15 million to Bayer Leverkusen to sign Xabi Alonso last summer.

He signed a three-year deal with Los Blancos worth anywhere between €7 and €9 million per year. Had Alonso fulfilled his tenure, he would have earned up to €27 million in wages.

In case of premature dismissals, managers generally receive the entirety of their due wages. In some instances, the two parties settle on a fee, which is generally half of the total salary due.

Former mixed Martial artist, Khabib Nurmagomedov on Xabi Alonso’s departure:

I believe Alonso is among the top three coaches of our era. If this team doesn’t succeed with him, they should change the players, not the coach.

I’m absolutely certain that there is no coach capable… pic.twitter.com/1ElW6L7LOY

— Real Madrid Info ³⁶ (@RMadridInfo) January 13, 2026

However, in Alonso’s case, Real Madrid only have to pay a fraction of the fee.

According to Spanish outlet COPE, Alonso’s Real Madrid contract included a clause regarding a potential early sacking.

The clause guaranteed that in the event of a dismissal in the first year of his contract, Real Madrid would only have to pay him for that year. Not the three years of the agreement.

Since he only got to seven months of his tenure, Madrid only have to pay him between €7 and €9 million in compensation.

Alonso Pens Heartfelt Message After Madrid Sacking

Xabi Alonso’s Real Madrid appointment brought a lot of hope to the Santiago Bernabeu. The former Bayer Leverkusen manager got off to a flyer, starting the season with 13 wins in 14 games.

However, things started to take a turn for the worse in November, as the team lost their lead in LaLiga and the Champions League. There were also reports of disharmony in the dressing room, which made a recovery all the more difficult.

Sunday’s defeat to Barcelona in the Supercopa de Espana turned out to be the final nail in the coffin, as Real Madrid swung the axe.

CONFIRMED: Real Madrid’s dressing room was more united and supportive of Xabi Alonso in recent weeks than any other point during his entire tenure as Real Madrid’s coach. @SQuirante @DAZN_ES pic.twitter.com/FTcy49Vxjx

— Madrid Zone (@theMadridZone) January 13, 2026

After his dismissal, Alonso took to Instagram to thank the club, players, and fans for their support.

He wrote:

“This professional stage is over, and it didn’t go as we would have liked. Coaching Real Madrid has been an honour and a responsibility.

“I thank the club, the players and above all the Madrid fans for their trust and support. I leave with respect, gratitude, and pride that I did my best.”

Alonso oversaw 34 games for Madrid, taking them to 24 wins, four draws, and six defeats.

Interestingly, Barcelona coach Hansi Flick had the same record after 34 games, but the Blaugrana stuck with him and are now reaping the benefits.