Real Madrid is about to enter a new managerial era as recent prospect Xabi Alonso is about to replace the club's most decorated coach, Carlo Ancelotti. With Alonso's hiring being a landmark moment, this begs the question of the financial side of things — namely, how much will Alonso be making compared to his predecessor?
Carlo Ancelotti's tenure and remuneration at Real Madrid
Carlo Ancelotti's second reign at Real Madrid between 2021 and 2025 was a highly successful period. During his time, Real Madrid won 15 major trophies, three of which were Champions League titles and two league titles, as well as other domestic and international trophies.
Ancelotti was also handsomely rewarded financially, with a yearly salary of around €11 million (£8.3 million), making him one of the highest-paid managers in football. His contract, which was extended just last December to run through 2026, contained clauses guaranteeing him full pay in case of ‘early termination.’ However, following a season that fell short of expectations, Ancelotti and the club parted ways amicably, with the Italian manager taking charge of the Brazilian national team.
Anticipated earnings for Xabi Alonso at Real Madrid
After leading Bayer Leverkusen to an unbeaten domestic double, Xabi Alonso has returned to Real Madrid—this time as head coach. Though the terms of Alonso's deal were not finalized with Real, it is expected that Alonso's contract will be less than Ancelotti's, given that he has only recently embarked on a career as a top-level manager.
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Real Madrid appoint Xabi Alonso as coachAlthough actual salary figures are not revealed yet, even by industry standards, Alonso's annual take could fall anywhere between €6 million to €8 million, with further performance-related bonuses and incentives being on the conservative end of the scale. This assessment comes close in line with Real Madrid's long-term strategy of providing attractive collective agreements that are nonetheless performance-based for all managers.
The cost of confirming the Spaniard, who led his former Bundesliga club Bayer Leverkusen last season, is said to have been £10 million in compensation, something that shows just how much the club believes in the new man at the wheel.
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