Carlo Ancelotti on Trial for Tax Fraud, Faces Prison Term

Ancelotti at court | Photo Credit: REUTERS


Real Madrid coach Carlo Ancelotti is on trial for tax fraud, with prosecutors seeking a four-year prison term and 3.2 million euro fine.


Real Madrid coach Carlo Ancelotti testified in a Spanish court on Wednesday, addressing accusations of tax fraud. He is alleged to have failed to pay 1 million euros ($1.08 million) in tax on revenue from his image rights. During his testimony, Ancelotti stated, “For me, everything was in order.”


Ancelotti emphasized his belief that his tax affairs were legitimate, expressing no intention to commit fraud. “I never thought about committing fraud,” he declared. The trial centers on allegations that Ancelotti improperly handled income from his image rights during his tenure as Real Madrid coach from 2013 to 2015.


Carlo Ancelotti took the stand on the first day of his trial, addressing the court for approximately 40 minutes. The Italian coach explained that upon joining Real Madrid, he was offered a net salary of 6 million euros and entrusted the club and his British adviser to handle the structural details. “I thought it was quite normal because at that time all the players and the previous coach had (done the same),” Ancelotti added.


Ancelotti is the latest high-profile figure in football to face investigation by the Spanish tax authority for alleged tax fraud. Several prominent players, including Cristiano Ronaldo and Diego Costa, have opted to settle out of court with substantial fines. However, others, such as Bayer Leverkusen coach Xabi Alonso, have chosen to defend their innocence in court. Alonso's acquittal was ultimately upheld by the Supreme Court in 2023.



Prosecutor Seeks Prison Term and Fine

The prosecutor is seeking a prison term of four years and nine months for Carlo Ancelotti, as well as a fine of 3.2 million euros, for two counts of tax evasion in 2014 and 2015. The prosecutor argues that Ancelotti only reported his salary from Real Madrid and omitted income from his image rights in his tax returns. Ancelotti countered that image rights hold less significance for coaches compared to players. “For coaches (image rights) don't mean the same as they do for players because they don't sell shirts,” he explained.


Prior to the hearing, the prosecutor stated that Spain's tax authority had seized the debt, plus interest, from Ancelotti. It is possible for the parties to reach an out-of-court agreement at any point during the process. A verdict is expected within a few weeks. Ancelotti's family members, including his wife Mariann, son Davide, and stepdaughter Chloe, also testified on Wednesday.


Ancelotti, a former Italian player who participated in the 1990 World Cup, began his second stint as Real Madrid's coach in 2021. Throughout his coaching career, he has achieved remarkable success, winning the Champions League five times, with two victories at AC Milan and three at Real Madrid.




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