Real Madrid manager, Carlo Ancelotti, has denied any intention of committing tax fraud as his trial opened in Madrid, Spain.
The 65-year-old Italian is facing accusations of failing to declare over one million euros ($1.1 million) in earnings from image rights during his initial tenure at the club in 2014 and 2015.
Spanish prosecutors are seeking a prison sentence of four years and nine months, arguing that Ancelotti only reported his salary from Real Madrid while omitting income generated from his image rights.
They alleged he used a network of shell companies to obscure these earnings, which also included revenue from real estate investments.
Defending himself before the High Court of Justice in Madrid, Ancelotti claimed that Real Madrid had suggested the payment arrangement to him and that similar setups were used by numerous players and even former coach Jose Mourinho.
“When the club suggests it to me, I put Real Madrid in touch with my advisor. I didn’t deal with it because I had never been paid that way,” he explained.
“I never realised that something wasn’t right,” he continued, emphasizing that he “never considered committing fraud.”
Ancelotti arrived at the court accompanied by his wife, Mariann Barrena, and his son Davide, who serves as his assistant at Real Madrid.
The trial is scheduled to last two days, though a settlement could be reached at any time, potentially avoiding a final verdict.
Past cases involving football stars have often concluded with suspended sentences through out-of-court settlements.
Ancelotti insisted he had no knowledge that the company managing his image rights led to a reduced tax obligation.
“At that time, all the players and coaches were doing it that way; it seemed like the right thing to do,” he stated.
Spain’s Tax Crackdown
In recent years, Spain has intensified efforts to prosecute football figures over unpaid taxes.
Jose Mourinho received a one-year suspended sentence in 2019 after pleading guilty to tax fraud.
Similarly, Lionel Messi and Cristiano Ronaldo were both convicted of tax evasion, though their sentences were waived as they were first-time offenders.
Beyond football, Colombian singer Shakira settled a tax fraud case in 2023, accepting a three-year suspended sentence and agreeing to pay 7.3 million euros in fines.
Prosecutors had accused her of evading 14.5 million euros in taxes between 2012 and 2014, though she insisted she only became a full-time resident of Spain in 2015 while in a relationship with Barcelona defender Gerard Piqué.
Ancelotti’s Career and Achievements
Ancelotti first took charge of Real Madrid in 2013 before departing in May 2015, later managing Bayern Munich, Napoli, and Everton. In 2021, he returned to the Spanish giants, adding to his illustrious coaching career, which includes domestic league triumphs in Spain, Italy, England, Germany, and France.
A two-time European Cup winner as a player with AC Milan, Ancelotti has since cemented his legacy as one of football’s most decorated managers, with multiple Champions League titles to his name.
