Revealed: Why Carlo Ancelotti’s anticipated switch to Brazil is likely to fall through, even as Real Madrid prepares for his potential successor.

Carlo Ancelotti’s anticipated move from Real Madrid to Brazil appears to be falling apart, despite Real Madrid having prepared a succession plan.

What happened? Ancelotti’s tenure at Real Madrid seemed to be nearing its end, with rumors suggesting he had reached an agreement to become the head coach of Brazil ahead of their World Cup qualifiers against Ecuador and Paraguay in June. However, discussions between the Selecao and Real Madrid now seem to be collapsing. Marca reports that Ancelotti traveled to London to finalize the deal but has since informed the Brazilian Football Confederation (CBF) that he will not accept the position.

The bigger picture Ancelotti’s change of mind appears to stem from two main factors. The first is timing, as Brazil wanted him in place for the June fixtures, but Ancelotti had made it clear he could only begin in August. The second reason is financial, as Ancelotti has reportedly received an “irresistible” offer from Saudi Arabia, with a contract worth €50 million (£58m/$67m) net per season, which is hard to turn down.

Tell me more Ancelotti’s decision comes at a time when Real Madrid has already prepared for his potential departure, with former player Xabi Alonso being the favorite to succeed him. Alonso has an agreement with Bayer Leverkusen that allows him to leave for Madrid. Meanwhile, Ancelotti still has a year remaining on his contract, and although he had requested €4 million (£3.3m/$4.5m) in compensation from the club, Real Madrid reportedly hopes he will leave without demanding the payout.

What’s next for Ancelotti? Real Madrid’s only remaining chance for silverware this season is La Liga, where they trail Barcelona by four points with five games to go. Los Blancos will face Celta Vigo next, but it remains unclear how much longer Ancelotti will remain in charge at the Santiago Bernabeu.