Germany’s 2026 World Cup campaign ended in the last 32 with a penalty shootout defeat to Paraguay, a result that sent shockwaves through the tournament and triggered an immediate institutional crisis. After a 1-1 draw in which Kai Havertz cancelled out Julio Enciso’s opener, the four-time champions had a goal disallowed in extra time before Jonathan Tah’s miss and two saves from goalkeeper Antony Gill sealed a 4-3 shootout loss. The 31-place gap in the FIFA rankings between the sides made it the fourth-largest upset in a World Cup knockout match, and it extended Germany’s run of early exits to three consecutive tournaments following group-stage eliminations in 2018 and 2022.

Within 48 hours, the German FA (DFB) convened a three-hour crisis meeting at its Frankfurt headquarters. German media report that president Bernd Neuendorf, league chief Hans-Joachim Watzke, sporting director Rudi Völler and managing director Andreas Rettig heard Julian Nagelsmann’s explanation of the team’s disjointed performances and tense camp atmosphere in Winston-Salem, then presented him with an ultimatum: resign voluntarily or face dismissal. A severance package of €7 million was tabled, roughly equivalent to one year of his reported salary under a contract that runs until 2028. Russian press notes that Nagelsmann, appointed in September 2023 after Hansi Flick became the first Germany coach to be sacked before a major tournament, has now lost all support within the DFB leadership. Indonesian coverage details that the coach was given time to consider his options, with a final decision expected by the start of next week.

The overwhelming favourite to succeed Nagelsmann is Jürgen Klopp, currently head of global football at Red Bull. German media, as well as Nigerian, Malaysian and Middle Eastern outlets, all point to the former Liverpool manager as the DFB’s preferred candidate. Swedish reports add that while Klopp’s Red Bull contract contains no formal exit clause, a tacit understanding exists that he would be released for the national team job. The path was, in fact, prepared years ago: former DFB president Reinhard Grindel has confirmed that a loose agreement was reached with Klopp in 2019 for him to take over after Joachim Löw in 2022, a plan that was abandoned when Grindel resigned. Klopp’s own television commentary during the tournament, in which he remarked he was glad Nagelsmann was picking the team “for now”, has been widely interpreted as a signal of availability.

Beyond the coaching question, German-language analysis points to deeper structural problems. Commentators in Zurich and Frankfurt argue that the DFB has long overestimated its competitive position, and that Nagelsmann’s tenure was undermined by communication missteps and a team that appeared increasingly rigid and directionless against modest opponents. The coach’s public clashes with players and his handling of the goalkeeper hierarchy had already eroded his authority, echoing the doubts about his maturity that surfaced during his final months at Bayern Munich.

Paraguay, meanwhile, advance to a round-of-16 meeting with France in Philadelphia on Saturday. For Germany, the immediate focus is on whether Nagelsmann will accept the offered exit or force the federation to dismiss him, a decision that will shape the next chapter of a national team in prolonged turmoil.