Carlo Ancelotti appointment as Brazil new head coach initially hailed as a major signing could turn into a full-blown scandal. FIFA has launched a formal investigation and is demanding explanations from the Brazilian Football Confederation (CBF) over alleged irregularities in the hiring process of the Italian manager.

The world football governing body has officially notified the CBF, asking for clarification regarding a $1.2 million commission paid to Diego Fernandes, a financial sector businessman who acted as the intermediary in the deal despite not being a licensed FIFA agent.

An Unlicensed Intermediary at the Center

Fernandes, based in Madrid, was hired months ago by then CBF president Ednaldo Rodrigues later removed from office by court order to convince Ancelotti to leave Real Madrid and take over the Seleção. The negotiations lasted several weeks and reportedly involved José Ángel Sánchez, general director at Real Madrid, to agree on the terms of the Italian contract termination.

Fernandes role became so prominent that he even flew with Ancelotti on a chartered flight from Madrid to Rio de Janeiro, wearing a retro Brazil national team jersey. His presence, and the attention it attracted, raised eyebrows both in the media and within the federation.

The real issue: Fernandes is not a licensed agent under FIFA regulations. Nevertheless, his name appears in the official contract between the CBF and Ancelotti, as revealed by ESPN Brasil, which obtained access to the documents.

FIFA Demands Transparency Ahead of Ancelotti Debut

FIFA has responded quickly. According to UOL, the Brazilian outlet that broke the story, the Zurich based organization sent a formal notice to the CBF requesting detailed documentation about the deal. Among the documents demanded are the contract between Fernandes and the federation and any related communications.

The deadline for submission is June 4, just one day before Ancelotti debut as Brazil head coach in a friendly against Ecuador in Guayaquil. The matter threatens not only the transparency of the appointment but also the credibility of the CBF new leadership, now headed by Samir Xaud elected in a controversial process.

Internal Friction and Unexpected Spotlight

Within the CBF new administration, Fernandes high-profile involvement has stirred discomfort. Despite having no professional football background or official credentials, the Brazilian businessman recently hired a PR agency to promote his role in securing Ancelotti arrival, gaining media attention in the process.

While Fernandes is known in private circles for offering financial services to Brazilian footballers in Europe, his public behavior during the Ancelotti deal starkly contrasts with his typically discreet approach.

A High Stakes Deal Under Scrutiny

Carlo Ancelotti left Real Madrid with a year remaining on his contract to sign with Brazil through the 2026 World Cup. His annual salary is reported to be $10 million. What was once celebrated as a landmark signing is now under a cloud of suspicion.

FIFA has made it clear: it will pursue the matter to its full extent. Once again, Brazilian football finds itself in the global spotlight for the wrong reasons.