Real Madrid Coach Carlo Ancelotti Ends Tax Fraud Trial

Real Madrid coach Carlo Ancelotti concluded his tax fraud trial in Spain on Thursday, during which public prosecutors slammed serious allegations against him.

They are seeking a significant sentence of four years and nine months in prison against Carlo Ancelotti, accusing him of concealing income from the Spanish tax authorities.

The case centers around accusations that Ancelotti failed to report over one million euros in income related to his image rights during the years 2014 and 2015, a period coinciding with his first tenure at Real Madrid.

Prosecutors contend that he orchestrated a “confusing” and “complex” network of shell companies designed to obscure these earnings, reporting only his salary while leaving out substantial income from image rights and other ventures, including investments in real estate.

In his closing arguments, the lead prosecutor firmly stated, “We consider the acts of fraud, concealment, and omission to be proven.” He reiterated the demand for a lengthy prison term, underscoring the seriousness of the offenses as they were presented to the High Court of Justice in Madrid.

Under the Spanish legal framework, prosecutors have the latitude to modify charges or the severity of penalties based on the evidence that emerges during trial proceedings.

Ancelotti, who is 65 years old and boasts an impressive career with a record five Champions League titles—including three with Real Madrid—took the stand on the first day of the trial.

He rejected the allegations of intentional tax fraud. The coach explained to the court that upon joining the club, he established a legal structure advised by the organization, which facilitated him in collecting a portion of his annual salary, specifically 15 percent, as image rights.

Carlo Ancelotti insisted that he never understood this arrangement to be a means of tax evasion, stating, “At that time, all the players and coaches were doing it this way; it seemed like the right thing to do.” He further noted that his predecessor, José Mourinho, had a similar financial setup.

Reports in Madrid are suggesting that the outcome of this trial could have significant implications not only for Ancelotti’s career but also for the broader context of financial practices within professional sports in Spain.