Real Madrid will need to reach a financial agreement with Bayern Munich

Despite competing for the Bundesliga and Champions League championships this season, the Bavarian giants chose to fire Nagelsmann last week, and Thomas Tuchel was appointed in his stead. Nagelsmann's unexpected resignation has sparked rumours that he may transfer to Madrid because of his long-standing connections to the manager's position at Los Blancos. After winning La Liga and the Champions League and having just over a year left on his contract, Carlo Ancelotti's future is still up in the air.

Brazil has made it clear that they want Ancelotti to replace Tite, so he is under pressure to win at least one championship this year. According to sources from Bild, Naglesmann's pay was only guaranteed provided he finished his second season as manager at the Allianz Arena. But, until he signs with a new team, Bayern will continue to pay him an estimated €8–9 million annually.