But I would have loved if this deal had played out, No doubt, Ancelotti is a very good manager and have had an incredible achievement with Real Madrid football club, both during his first stay and present stay in Madrid, But seeing a new manager like Xabi, take up the job with a different tactics other than what we've known Madrid with under Ancelotti would have made sense, Maybe Xabi would bring a new glory to Madrid looking at his performance currently in Bayern Leverkusen.
Ancelotti has been a great coach at Madrid and has helped the team achieved so much already, he has been able to help the team achieve all that which he has achieved over a period of time because he has been at Madrid for More than two seasons already so they have gotten used to his style of coaching such that achieving a lot with him isn't difficult no more.
Xabi on the other hand in Leverkusen has been able to help the team achieve a better form within the period of time he has been at Leverkusen amd yet to achieve a trophy so I don't think moving to another team almost immediately is a good move, it could be detrimental to his career because so far the only thing he has achieved is helping Leverkusen get a better form and no trophy yet to show for it, I know they will say at Madrid it's very promising he will win trophies but have you considered the conditions at both places will not be the same as there are so many factors that will influence the quality of his results and as a young coach who's career is still at the start, he has to be careful to making sure he it doesn't get ruined even before it starts.
Of course Real Madrid prefers to extend the contract with Carlo Ancloti because they feel his coaching style is suitable and by extending Real Madrid there is no need to adapt again to a new coach, after all Real Madrid has become an important part of Carlo Ancloti because this coach prefers to extend his contract and refuses coaching the Brazilian national team. Xabi Alonso is a good coach but because Xabi Alonso does not have as much experience as Carlo Ancloti, Real Madrid prefers to keep their coach.
Yes, Xabi current weakness is that he cannot bring Leverkusen to the title, but if Xabi Alonso is able to bring Leverkusen to the title. Xabi will show that his talent is like that of an experienced coach, but in my opinion, Xabi is a very good coach because even though he is still young, his coaching style following developments and making Leverkusen a team that is currently feared like Bayern Munich.