Carlo Ancelotti, who left Everton two years ago to become the head coach of Real Madrid, has filed a lawsuit against the club at the High Court.

The legal action relates to “general commercial contracts and arrangements,” according to the Italian’s lawyers.

The details surrounding the claim are not specified in the documents.

However, there appears to be a dispute between Ancelotti and Everton regarding a tax issue linked to a £2 million bonus payment made to the coach during his tenure.

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This development presents a challenging situation for Everton, who are currently facing financial difficulties and are in the process of a potential sale.

Last month, the club secured a substantial loan to support the construction of their new Bramley Moore Dock Stadium.