Real Madrid coach Carlo Ancelotti is set to appear in court on Wednesday to face tax fraud charges, the latest high-profile name in Spanish football to be scrutinized for financial misconduct.
Prosecutors accuse the 65-year-old Italian of failing to declare more than 1 million euros ($1.1 million) in income from image rights during his first stint with Los Blancos in 2014 and 2015.
The case is part of Spain’s intensified crackdown on football figures over tax evasion.
Prosecutors are seeking a prison sentence of four years and nine months, along with a fine of 3.2 million euros.
They argue Ancelotti only declared his Real Madrid salary while omitting significant earnings from sponsorships, image rights, and other revenue streams.
According to legal filings, authorities claim he created a “complex” network of shell companies to obscure his additional income.
The trial, scheduled at Madrid’s High Court of Justice, is expected to last two days.
However, a last-minute settlement remains possible.
Spain’s tax authority has already seized the disputed amount plus interest from Ancelotti, raising speculation about a potential resolution without imprisonment.
Battle with tax authorities
Ancelotti is far from the first football figure to face legal trouble over taxes in Spain.
Former Real Madrid coach Jose Mourinho received a one-year suspended sentence after a guilty plea in 2019, while superstars Lionel Messi and Cristiano Ronaldo were both convicted of tax evasion but avoided jail due to first-time offender status.
Beyond football, Colombian pop icon Shakira agreed to a three-year suspended sentence in 2023, paying a hefty 7.3 million euros to settle her own tax fraud case after Spanish authorities alleged she owed 14.5 million euros.
The singer, who was romantically linked to ex-Barcelona star Gerard Pique, denied wrongdoing, stating she was not a full-time resident in Spain during the contested period.
Career under scrutiny
Ancelotti, a two-time European Cup-winning midfielder with AC Milan, has enjoyed unparalleled success as a manager.
He has won a record five UEFA Champions League titles, three with Real Madrid and two with Milan.
His managerial resume also includes league triumphs in Spain, England, Germany, France, and Italy with clubs like Chelsea, Bayern Munich, and Paris Saint-Germain.
Initially taking charge of Real Madrid in 2013, Ancelotti guided them to their long-awaited “La Decima” – a 10th Champions League crown – before departing in 2015.
He later managed Bayern Munich, Napoli, and Everton before making a triumphant return to Madrid in 2021.
Speaking to reporters last week, Ancelotti maintained his confidence in the Spanish judicial system, dismissing the case as an “old story” that he hopes will be resolved soon. “Of course, it upsets me a little if they believe I have committed fraud, but I will testify and hope to convince them otherwise,” he said.