Not that surprising in the end, given the poor performances from Brazil under him.
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What now, though? Interim until summer and try the Ancelotti song and dance again?
No idea. Maybe Ancelotti would indeed give it a go, after his Madrid contract ends. Failing that, I've heard speculation about Filipe Luis, who could almost act like a player manager. On the other side of the spectrum some consider Jorge Jesus a potential candidate. He surely doesn't lack experience and, although he is Portuguese, has experience coaching Brazilian teams.
Ancelotti I think has a contract until '26, so I'm guessing it'll be the same old thing where the narrative becomes "if Ancelotti doesn't win the CL he'll get sacked for Xabi Alonso and then go to Brazil". And he'll end up winning the CL again and staying...