Real Madrid have protected themselves from the potential of a hefty pay-out with a clause in new coach Carlo Ancelotti's contract.

Ancelotti has returned to Real Madrid to replace his former No2 Zinedine Zidane, walking out on Everton in the process.

AS says the Italian has agreed to take the Real job on less money than the €11m-a-year he was earning at Goodison Park.

Ancelotti has signed for three years, but if things don't work out next season and he is dismissed, the Italian will not be paid out for the final year of the three-year deal.

Everton have allowed Ancelotti to leave without a fight, with the Italian's salary a strain on the club's budget.

He returns to a locker room that still features several of his Champions League winners, including Toni Kroos, Luka Modric, Sergio Ramos, Karim Benzema and Marcelo.