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In the end, common sense won the war and Zinedine Zidane will be able to coach Real Madrid Castilla throughout the season. The Spanish Administrative Sporting Court has admitted Real Madrid's appeal and has revoked the ban on Zizou and Santiago Sánchez, who was, on paper, Real Madrid Castilla's head coach. Real Madrid will not need to pay any fine either.
Both Zidane and Sánchez had been banned on October 27th for three months, but since Real Madrid had appealed such a decision, they had been cleared to sit on Real Madrid Castilla's bench until a final decision were made. It is worth mentioning that during this FIFA break Zizou has travelled to France to complete his coaching training with the French Federation, and as a result he will receive his definitive license in July.
From now on, we should not expect any other problem concerning Real Madrid Castilla's bench. All we have to do now is hope that they will keep their current stride and that they will be able to return to the Segunda División in the end of the season.