Former Liverpool and England captain Steven Gerrard has been linked with a return to UK management, but the latest update suggests he’ll stay away until at least the summer.
Gerrard, 45, joined Saudi Pro League club Al-Ettifaq in July 2023.
He then signed a lucrative extension in 2024, that would have kept him in Saudi until 2027.
But Gerrard departed the Saudi Pro League side in January after a disappointing spell in charge, the former Aston Villa and Rangers boss isn’t expected to return to the UK just yet.
That’s because the nature of his deal in Saudi means returning to manage in the UK could become both complicated and costly.
Steven Gerrard Latest As UK Return Risks Massive Tax Bill
During his time in Saudi Arabia, Gerrard was reportedly one of the best-paid managers in world football, earning around £15 million a year.
All of that income was tax free, meaning he pocketed the entire sum.
When he departed Al-Ettifaq, sources indicated his contract included post-termination clauses, meaning he received a hefty payout.
That money will also have been subject to Saudi tax and residency rules.
But if Gerrard were to take a UK-based job before the end of the tax year, he would become a UK tax resident again, triggering a massive potential tax bill.
He could end up having to forfeit millions in tax and any offshore wealth earned while in Saudi.
With the UK’s top rate of income tax at 45% on earnings over £125,000, the Liverpool legend would be giving up a vast amount of money.
For context, his £15 million tax-free salary in Saudi would be less than £8 million after tax in the UK.
As a result, there’s little incentive for him to rush back and take on a high-pressure job at a significant financial cost.
A massive tax bill after playing in Saudi is also thought the be the reason why Ivan Toney won’t return to the UK in January.
Interested UK Clubs Will Have To Wait On Steven Gerrard
While Gerrard is not expected to take a new job until next summer, he’s not short of suitors.
He’s been heavily linked to the vacant Middlesbrough job, with Rob Edwards set to join Wolves.
Southampton are also manager-less, while Leeds United, Fulham and Newcastle are all reportedly considering a change.
A romantic return to Rangers has also been touted as a possibility.
Gerrard won the Scottish Premiership with the Glasgow side in 2021.
But the former midfielder is thought to be taking a patient approach. He is enjoying some down time and waiting for the right opportunity to present itself.
A return to the Premier League remains his long-term goal, but Gerrard is in no rush.
He recently spoke to ex-England teammate Rio Ferdinand’s YouTube channel, explaining the situation.
Gerrard said: “I’m now enjoying family time and doing a lot of things that I haven’t been able to do.
“But there’s a part of me that still feels that there’s a bit of unfinished business in terms of wanting to go in and face another couple of exciting challenges.
“But I want a certain type of challenge. If in an ideal world they come available, I’ll jump at them. If they don’t, I won’t go back in.
“I want to be at a team that’s going to compete to win because I think that suits me better.”
