Carlo Ancelotti’s Brazil exit from Real Madrid under FIFA investigation

By the time Carlo Ancelotti left Real Madrid, he had already been announced as the new Brazil manager. With the Italian’s time up, and both Ancelotti and Real Madrid planning for the future in late April, a rather unusual situation occurred.

Despite the radio silence from the club and the denials of Ancelotti, the Italian coach was in talks with Brazil over becoming their manager and Los Blancos had contacted Xabi Alonso about taking over. At the time Brazil were on the charm offensive, and intermediary Diego Fernandes was a consistent presence at the Santiago Bernabeu.

FIFA open investigation into Diego Fernandes commission

Fernandes, a Brazilian businessman who is close to the Brazilian Football Confederation (CBF), but without an official role, was staying in Madrid in an attempt to broker a deal between Ancelotti and Brazil. When the deal was done, Fernandes was pictured with Ancelotti, and transfer journalist Fabrizio Romano cited him as ‘taking care of talks’.

🫂🇧🇷 Carlo Ancelotti takes his first pic as Brazil head coach after signing deal to join the Seleçao.

Here’s Ancelotti with Diego Fernandes taking care of talks on CBF behalf. pic.twitter.com/0HknirbNuh

— Fabrizio Romano (@FabrizioRomano) May 15, 2025

As explained by Sport, FIFA have opened an investigation into the negotiation, and have demanded that the CBF explain the €1.2m commission paid to Fernandes. The Catalan daily explain that he was contracted by the CBF, and his name features in Ancelotti’s contract.

Fernandes is not a registered agent

The crux of the issue is that Fernandes is not a registered FIFA agent, and thus was not permitted to approach Ancelotti on Brazil’s behalf. Sport quote information from UOL Esporte, who say that FIFA have demanded explanations from the CBF by the 4th of June, the day before Ancelotti’s Brazil debut against Ecuador.

Ancelotti set for baptism of fire with Brazil

On the pitch, Ancelotti is facing a tricky start. They will play away in Quito against Ecuador, and then host Paraguay the following week. The former occupy second spot in the South American qualifying table, and have lost just twice. Meanwhile Paraguay are a spot behind Brazil, and level on points. They have not lost under current manager Gustavo Alfaro, beating Argentina in November. Ancelotti has just a year to get Brazil in shape to challenge for the World Cup next summer.