Real Madrid coach Carlo Ancelotti denied in court on the first day of his trial that he intentionally committed tax fraud. He is accused of failing to declare income to Spain’s tax office from 2014 and 2015, during his first stint at the club. This case is part of a broader series of legal actions targeting sports figures in Spain.
Prosecutors are seeking a prison sentence of four years and nine months for the 65-year-old Italian, alleging that he failed to pay over one million euros ($1.1 million) by not declaring income from image rights during that period. They claim Ancelotti only reported his salary from Real Madrid and omitted income from image rights in his tax returns, setting up a complex system of shell companies to hide the extra earnings.
Ancelotti told the High Court of Justice in Madrid that the payment system was proposed to him by Real Madrid, and he insisted that “all the players do it,” including former coach Jose Mourinho. He explained, “When the club suggested it, I put Real Madrid in touch with my advisor. I didn’t handle it myself because I had never been paid that way.” He added that he “never realized something was wrong” and never intended to commit fraud.
Ancelotti attended the court session with his wife, Mariann Barrena, and son Davide, who is an assistant manager at Real Madrid. The trial is expected to last two days, and an out-of-court settlement is still a possibility.
In similar cases involving footballers, suspended sentences have often been reached through settlements. Ancelotti stated that he did not realize that the company used to transfer image rights to him allowed him to pay less tax. “At that time, all players and coaches were doing it this way; it seemed like the right thing to do,” he said.
Spain has increased its crackdown on football stars who have avoided paying taxes. Notably, Mourinho received a one-year suspended sentence for tax fraud in 2019, and both Lionel Messi and Cristiano Ronaldo were found guilty of tax evasion, receiving prison sentences that were waived as first-time offenders. In 2023, singer Shakira agreed to a three-year suspended sentence and a fine to settle a tax fraud case.
Ancelotti managed Real Madrid from 2013 to 2015 before moving to Bayern Munich. He later managed Napoli and Everton before returning to Real Madrid in 2021. As a player, Ancelotti won the European Cup twice with AC Milan, and as a manager, he has won league titles in several countries, including Spain, Italy, England, Germany, and France.