On 1 July 1999, after 364 appearances and 66 goals for Liverpool, McManaman transferred to Real Madrid as Guus Hiddink's last signing (before being sacked, and while the club was under president Lorenzo Sanz). Before McManaman arrived, the club was described as undergoing a management and debt crisis and Raúl told the press, "The dressing room is a cesspit of lies, treachery and whispers ... I feel sorry for new players like Steve McManaman coming into the club. If McManaman thinks he is coming to one of the world's top clubs then he has made a big mistake."