That is the view of Reds expert David Lynch, who was speaking to Sports Mole in the wake of the England international's public confession that he wants to become the first full-back to win the Ballon d'Or.
History suggests that Alexander-Arnold would be better placed to fulfil his Ballon d'Or dream at the Bernabeu than Anfield, but Lynch has warned the full-back that he will not get his hands on the trophy in the Spanish capital due to the abundance of superstars already playing for Los Blancos.
"I think people have read it as, oh, well, that means he probably might want to go to Real Madrid, but Trent could play out of his skin at Real Madrid and they could win every trophy that's available to them in the season - he won't win the Ballon d'Or. That's a fact," Lynch said.
"Because one of the forwards who is in that team as well will win it. So he's got a better chance, I would say, of winning the Ballon d'Or if he plays for Liverpool, where his prominence is much higher.
Was Alexander-Arnold hinting at future Madrid move with Ballon d'Or claim?
"He's clearly seen as the key player at Liverpool rather than if he went to Real Madrid, where he'd be almost a cog in a machine that is full of superstars, but he'd just be one of many. So I don't read into that as him waiting to go to Real Madrid or anything like that.
"I still think he'd be better served in that aim at Liverpool, so I don't think he was hinting at that anyway. We still wait for further updates on his contract, but I'm sure we'll be reading into every hint we can get between now and then."
Liverpool did not have a single player nominated to the 30-man shortlist for the 2024 men's Ballon d'Or, which was won by Manchester City and Spain fulcrum Rodri despite initial suggestions that Real Madrid's Vinicius Junior was set to take home the accolade.
The La Liga and Champions League holders learned on Monday morning that Vinicius was unlikely to win the Ballon d'Or and astonishingly cancelled their flight to Paris for the ceremony, where they won Men's Club of the Year as Carlo Ancelotti took home the Men's Coach of the Year award.
Vinicius and Real Madrid have angrily reacted to the former's snub, but Rodri - who also pipped Jude Bellingham and Dani Carvajal to the men's honour - was a worthy winner in Lynch's eyes.
"I think he was absolutely the outstanding candidate, as crucial as anyone in world football to their team can be, and that is not just at club level, but international as well. I think he was absolutely a deserved winner," Lynch added.
Comparing Liverpool and Real Madrid's Ballon d'Or successes
Had Vinicius indeed beaten Rodri to the 2024 Ballon d'Or, Real Madrid would have been in a league of their own with 13 separate wins in the men's category; their total of 12 is already the joint-most alongside Barcelona.
Los Blancos have also had a record-breaking eight players take home the award for their feats in the Spanish capital, including Cristiano Ronaldo, Karim Benzema, Luka Modric, Luis Figo, Alfredo Di Stefano, Raymond Kopa, Ronaldo and Fabio Cannavaro.
Meanwhile, Michael Owen's crowning in 2001 remains the only time that one of Liverpool's own has won the Ballon d'Or, although Virgil van Dijk, Steven Gerrard, Fernando Torres and Sir Kenny Dalglish have also made the top three.
Alexander-Arnold's situation remains the same - he can leave for free in 2025 and talk to foreign clubs from January onwards - and Real Madrid allegedly feel that Liverpool are resigned to losing the 26-year-old.
The Liverpool academy graduate would join Real Madrid as a successor to Carvajal, who is out for the season with a knee injury, and Ancelotti has already dropped a major hint on whether his side will make a move in January.