Arne Slot handed huge payout after being sacked by Liverpool

Arne Slot will reportedly be given a significant compensation payout by Liverpool after being sacked as manager.

Liverpool announced on Saturday afternoon that they had parted company with Slot after the end of his second season in charge at Anfield.

The Dutchman won the Premier League title in his first campaign last season and won the Manager of the Season award.

But Liverpool could only finish fifth this campaign, scoring 24 points fewer than when they won the title.

While Slot had to contend with a series of injuries to key players, there have been concerns over the side's style of play and repeated criticism of the manager from star player Mohamed Salah, who will leave Liverpool by mutual consent this summer.

Andoni Iraola is expected to become the next Liverpool head coach after leaving Bournemouth.

READ MORE: Liverpool next manager 'confirmed' after Arne Slot sacking

The club's ownership stated that it was a 'difficult decision' to part ways with Slot, but added that they had 'come to the conclusion that change is necessary in order for the club to keep moving forward'.

"It must be stressed that this is not a decision which has been reached lightly, anything but," the statement continued.

"We would like to take this opportunity to place on record our appreciation for Arne, who will always hold a special place in the history of this football club as the coach who delivered Liverpool's 20th league title."

READ MORE: Liverpool sack Arne Slot as lengthy club statement issued

Slot's Liverpool payout revealed

Slot signed a three-year contract to become Liverpool manager in the summer of 2024, meaning it still had a year left to run at the time of his sacking.

There has been no announcement yet regarding the future of the Dutchman's coaching staff at Anfield.

His assistant manager, Sipke Hulshoff, moved with Slot to Liverpool from Feyenoord in 2024, with former Rangers and Arsenal defender Giovanni van Bronckhorst appointed as first-team coach last summer.

Arne Slot and assistant manager Sipke Hulshoff pictured (Image: Getty)

It is often commonplace for clubs to agree a collective compensation fee for both the manager and their staff in the event that coaches also exit.

According to Dutch outlet FootballTransfers, Liverpool will pay around £9.5 million in compensation following Slot's sacking.

That sum is far lower than what Manchester United had to pay after sacking their manager Ruben Amorim in January.

United's latest financial accounts showed that the club paid a sum of £16.6 million in 'exceptional items' during the third quarter of the financial year up to the end of March 2026 - believed to be related to the departure of Amorim and his coaching staff.

The Portuguese boss had 18 months left on his contract at the time of his exit.

It is unclear as to how Slot's compensation will be paid out, and whether he stays on Liverpool's payroll and continues to earn a weekly salary while he remains out of work or is paid the fee as part of a one-off sum.

The Dutchman has been sacked at a time where elite managerial vacancies are relatively few and far between.

Oliver Glasner will reportedly hold talks over the vacant AC Milan role next week after taking charge of his final Crystal Palace game, while Napoli are said to have agreed a deal with Massimiliano Allegri.

One other vacancy that could appeal is at Bayer Leverkusen, who had held talks with Iraola prior to the announcement of Slot's sacking.

The Spaniard is now the 'clear favourite' to become Liverpool manager, according to The Athletic, and there does not appear to be many stumbling blocks that could hold up his appointment having already confirmed his departure from Bournemouth.