Xabi Alonso Exits Real Madrid: How a €60m Transfer Miss Cost His Job at Santiago Bernabeu

Xabi Alonso’s 7-month Real Madrid stint ended after a Super Cup defeat and poor results. Tactical issues and missing out on Martin Zubimendi contributed. Now a free agent, top European clubs are reportedly eyeing him for his next managerial role.

The Spanish manager and former footballer Xabi Alonso parted ways with Real Madrid after the Los Blancos’ defeat to their rivals FC Barcelona in the Super Cup Final at the King Abdullah Sport City Stadium in Jeddah, Saudi Arabia, on Sunday, January 11.

Alonso’s fate at Real Madrid was hanging in the balance as the result of the UEFA Super Cup final was widely viewed by the club hierarchy as a decisive test of his tenure, and the defeat eventually sealed his departure from Santiago Bernabeu, where he once enjoyed immense success as a player. The 44-year-old left Real Madrid just seven months into his tenure, having been appointed as a manager in June 2025.

Xabi Alonso’s exit was already on the brink following Real Madrid’s dire run of form and heavy defeats, including losing to reigning European champions Paris Saint-Germain in the Club World Cup, Atletico Madrid in La Liga, and Liverpool and Manchester City in 2025. During 2025, Los Blancos won just two matches in eight outings, derailing their quest to clinch the La Liga Triumph.

Real Madrid’s inconsistency and poor performances in crucial matches have further eroded the club’s hierarchy's confidence in Alonso, leaving his position untenable despite his short time in charge.

Lots of Hopes and Ambitions, but Failed to Deliver

After Real Madrid decided not to renew Carlo Ancelotti’s contract following a mixed 2024–25 season, marked by disappointing results despite legend status at Santiago Bernabeu and his links to Brazil national team coaching role, the club turned to Xabi Alonso, who played for Los Blancos for five seasons from 2009 to 2014, as his successor in hopes of refreshing the team’s direction.

The hype and anticipation around Alonso’s return to Real Madrid as a manager were immense, with the fans and hierarchy expecting him to translate his deep understanding of the club and modern football ideas into immediate success at Santiago Bernabeu.

Former Spanish footballer’s successful managerial stint at Bayern Leverkusen, where he led the German club to their maiden Bundesliga title, German Cup, and Super Cup, while overseeing an unbeaten run of 51 matches, fuelled expectations that he could replicate a similar tactical revolution and winning culture at Real Madrid.

Just seven months into his contracted three-year tenure, those lofty expectations gave way to mounting pressure, as inconsistent results, tactical doubts and failure to deliver in big matches ultimately exposed the gap between promise and performance at Santiago Bernabeu.

The club hoped that his modern tactical approach and his success at Bayern Leverkusen would spark an immediate revival, but his inconsistent results and heavy defeats led to his early exit from Real Madrid. Moreover, there were reports of issues in the dressing room, with senior players Vinicius Jr and Kylian Mbappe showing a lack of respect towards him and his tactics.

€60m Transfer Miss That Sealed Alonso’s Fate at Real Madrid

After Xabi Alonso arrived at Santiago Bernabeu, Real Madrid backed their former player with signings of Trent Alexander-Arnold, Dean Huijsen, Alvaro Carreras and Franco Mastantuono, highlighting their long-term vision rather than short-term fixes. However, Alonso apparently noticed that his system lacked a true midfield organiser, someone capable of controlling the game’s tempo and linking defence with the attack.

One of the names that Alonso believed could fill the role was Spanish footballer Martin Zubimendi. According to Xabi Alonso, Zubimendi was the best fit in his tactical plans, given his ability to dictate the play from deep and control the tempo. The Spanish international’s transfer was valued between €60 million and €70 million, a fee which was manageable for Real Madrid.

However, the timing played a massive role in the deal falling through, as Arsenal was making serious progress in the acquisition of Martin Zubemendi. However, Real Madrid did not back the manager despite supporting him in earlier signings after he arrived at Santiago Bernabeu. This left Xabi Alonso frustrated as his long-term tactical vision lacked the crucial midfield anchor he considered essential to fill the gap.

Xabi Alonso recognised that the players like Aurelien Tchouameni, Eduardo Camavinga, Federico Valverde, and Jude Bellingham were talented, but he believed the team didn’t have enough strength and positional stability to control the game. Despite the Spanish manager experimenting with various strategies and solutions, none of them aligned with his tactical vision.

The lack of an anchor left his system unbalanced, inconsistent results and ultimately contributing to the premature end of his tenure at Santiago Bernabeu.

What Next for Xabi Alonso After Real Madrid Exit?

Following his exit from Real Madrid after just seven months into his tenure, Xabi Alonso is without any managerial role, but will reportedly take a short break and spend time with his family before exploring opportunities to return to management.

It was reported that several European clubs, including Liverpool, Bayern Munich, and Manchester United, are monitoring his availability for a managerial role. Alonso is a popular figure at Liverpool, where he spent six seasons from 2004 to 2009, and played a pivotal role in the team’s success in the Champions League triumph in 2005 and the FA Cup title in 2006, and remains a fan favourite.

With Arne Slot’s future at Anfield uncertain amid the defending Premier League champions’ inconsistent results and a 14-point gap from the top while sitting in fourth place, reports suggest Xabi Alonso could be considered as a potential successor should the club seek a managerial change. Manchester United are also looking for a manager after sacking Ruben Amorim, and Darren Fletcher is currently serving as interim boss.

It was reported that Tottenham Hotspur is likely to move on from Thomas Frank, as the side has been struggling with consistency and results this season, with Spurs managing just two wins in their last 12 Premier League games. The Tottenham fans were demanding his sacking as the team is currently at the 14th spot on the Premier League points table after 21 matches.

It remains to be seen what lies ahead for Xabi Alonso, as he looks to rebuild his managerial career after his Real Madrid exit, with top European clubs keeping tabs on his availability. His next move will likely depend on the timing, club ambitions, and whether he can implement his tactical philosophy effectively.