Tax Fraud: Carlo Ancelotti to face trial in Spanish court

Real Madrid head coach Carlo Ancelotti is set to appear in Spanish court on Wednesday over allegations of tax fraud, making him the latest football icon to be scrutinized by Spanish tax authorities.

Prosecutors seek prison sentence and heavy fine

The 65-year-old Italian is accused of failing to declare over €1 million ($1.1 million) in taxes on revenue from image rights during his first tenure with Real Madrid in 2014 and 2015.

Spanish prosecutors are seeking a four-year and nine-month prison sentence, along with a €3.2 million fine, arguing that Ancelotti only reported his salary from Real Madrid while omitting significant earnings from sponsorships and image rights.

Ancelotti has denied any wrongdoing, stating last week that he has “complete trust in the Spanish justice system” and is ready to testify in court.

Trial to run for three days

The trial is scheduled to last three days at Madrid’s High Court of Justice, though an out-of-court settlement remains possible at any stage.

Spain’s tax agency has already seized the disputed amount plus interest, raising speculation that the case could be resolved without a jail sentence.

Ancelotti among football stars targeted by Spanish tax authorities

The Italian tactician is the latest high-profile football figure to be investigated by Spanish tax authorities for alleged tax fraud.

Similar cases involving Cristiano Ronaldo, Lionel Messi, and Diego Costa have been settled with hefty fines.

However, in 2023, Bayer Leverkusen coach Xabi Alonso successfully defended his innocence, with Spain’s Supreme Court upholding his acquittal after he refused to settle.

Ancelotti’s illustrious career

A legendary figure in football, Ancelotti has won a record five UEFA Champions League titles as a manager—three with Real Madrid and two with AC Milan.

His managerial success spans across Europe, having won league titles in Spain, England, Germany, France, and Italy with clubs like Chelsea, Bayern Munich, and Paris Saint-Germain.