What began as a routine week for Real Madrid turned into a whirlwind of headlines, emotions, and uncertain futures. After a tense 3-2 defeat in the Copa del Rey final against arch-rivals Barcelona, attention quickly shifted to Carlo Ancelotti.
Reports from The Athletic suggested that the decorated Italian tactician was set to take charge of the Brazil national team, a seismic move in the footballing world. However, that much-anticipated transition now appears to be in limbo, and confusion surrounds what lies ahead for the veteran manager and Los Blancos.
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Initial Agreement: A Dream on the Brink of Reality
Carlo Ancelotti had been engaged in formal discussions with the Brazilian Football Confederation (CBF) since March. The president of the federation, Ednaldo Rodrigues, regarded him as “the dream of the president.” Despite the presence of other names such as Jorge Jesus of Al Hilal, Ancelotti remained the frontrunner.
The talks accelerated in recent weeks. The CBF even dispatched emissaries to meet Ancelotti, culminating in a verbal agreement for him to manage Brazil from June and continue through the 2026 FIFA World Cup. Insiders claimed Ancelotti disclosed this agreement to select individuals at Real Madrid’s Valdebebas training ground. The only missing piece was his signature. Yet that moment of completion never arrived.
A Promising Pact Gets Derailed in Madrid
The plan had been simple. After Real Madrid’s Champions League elimination at the hands of Arsenal, Ancelotti would sign the deal following the Copa del Rey final. Real Madrid and the manager were also set to discuss the mechanics of his departure during that same week.
The CBF’s requirement was clear: their next coach needed to be available for two upcoming World Cup qualifiers — away against Ecuador and home against Paraguay on June 4 and 9. Jorge Jesus accepted these terms and even had a preliminary agreement in place, contingent on Ancelotti’s decision.
The Brazilian side had begun logistical preparations, discussing staff appointments and how to reveal Ancelotti’s selection publicly. His son, Davide Ancelotti, was part of those talks and would have joined him in Brazil unless he secured a managerial role of his own by summer.
Ancelotti met with the CBF once again in London. Everything pointed towards an imminent signing. But in a dramatic twist, Ancelotti hesitated. After initially promising to complete the process in Spain, he called the federation to express doubts just hours later.
Fallout and Frustration Within the CBF
The reaction in Brazil was mixed. Some officials held out hope, while others urged caution. After last year’s failed attempt to lure Ancelotti, a repeat setback could damage the reputation of President Rodrigues.
Meetings on Tuesday attempted to revive the deal, but uncertainty lingered. Unlike club roles, managing a national team often offers lower compensation. Despite Brazil’s willingness to match his salary, Ancelotti’s current deal at Real Madrid — which runs until 2026 — remained a stumbling block.
The Compensation Conundrum
At the heart of the issue lies Ancelotti’s contract with Real Madrid. His extension, signed in December 2023, carries financial implications if terminated early. Typically, if the club ends a contract prematurely, compensation follows. That was the case during Ancelotti’s first stint between 2013 and 2015.
This time, Real Madrid may hesitate. If Ancelotti initiates the departure, compensation may not be guaranteed. The club and the coach are reportedly negotiating a settlement — either reducing the amount or waiving it altogether.
Ancelotti has long voiced his opposition to coaches being dismissed without proper payouts. During a 2023 meeting of Spanish first and second-division coaches, he criticized such practices. This stance complicates any exit without due financial resolution.
A comparable scenario played out with Mauricio Pochettino last year, when he joined the USMNT while still under contract with Chelsea. All parties collaborated to cushion the financial blow, a precedent that could guide this situation.
If Brazil Doesn’t Materialize, What’s Next?
Should the Brazil move fall through, Ancelotti won’t be short of options. Several Saudi Arabian clubs, including Al Hilal, have expressed interest. When asked in 2023 about moving to Saudi Arabia, Ancelotti joked, “I would go on foot, without reservations. I don’t need to book a flight, I would walk.”
Beyond Saudi Arabia, Ancelotti could remain at Real Madrid in a different capacity. His current contract reportedly includes a clause for a non-coaching role, allowing him to stay connected with the club in some executive or ambassadorial capacity.
Real Madrid’s Contingency Plans Already in Motion
Regardless of the outcome, Real Madrid has already begun strategizing for life after Ancelotti. Their top candidate remains former midfield maestro Xabi Alonso, currently managing Bundesliga champions Bayer Leverkusen.
Fernando Carro, Leverkusen’s CEO, confirmed the existence of a “gentlemen’s agreement” with Alonso. If a club he previously represented made a formal approach, Alonso would be free to explore the opportunity. A decision from the Spaniard is expected within weeks.
Should Alonso decline or delay, Real Madrid may rely on an interim solution. Santiago Solari, who previously served as caretaker and now holds a front-office role, is one candidate. Raul Gonzalez, the iconic striker currently coaching the club’s B team, is another. Raul has worked alongside the first team in training and has a full coaching staff ready to step in.
However, multiple insiders believe Ancelotti is unlikely to manage Real Madrid at the FIFA Club World Cup in the United States, regardless of how this saga concludes.
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FAQs
Carlo Ancelotti hesitated to sign the Brazil contract after initially agreeing, citing unresolved financial matters with Real Madrid and personal doubts.
Ancelotti verbally agreed to coach Brazil through the 2026 World Cup, but didn’t sign due to compensation issues with Real Madrid.
It’s uncertain. Talks are ongoing, but concerns remain about the financial settlement with Madrid and timing of his exit.
Yes, Ancelotti could stay in a non-coaching role at Madrid or complete his contract, which runs until 2026, unless an agreement is reached.
Xabi Alonso is the top choice, but if unavailable, interim options like Santiago Solari or Raul could step in for the Club World Cup.
