Real Madrid coach Carlo Ancelotti denied Wednesday intentionally committing tax fraud in the opening of his trial at Madrid’s High Court of Justice.
The 65-year-old Italian is accused of failing to declare over 1 million euros ($1.1 million) in earnings from image rights and other sources between 2014 and 2015, during his first stint at the club.
Prosecutors have sought a jail term of four years and nine months, claiming Ancelotti reported only his Real Madrid salary while omitting substantial income from sponsorships and image rights.
They allege he set up a “complex” network of shell companies to conceal this income.
Ancelotti, who appeared in court with his wife Mariann Barrena and son Davide, Real Madrid’s assistant manager, stated the payment system was proposed by the club.
He insisted he was unaware of any wrongdoing, saying, “When the club suggests it, I put them in touch with my adviser. I never thought anything was amiss.”
Ancelotti emphasized he did not consider fraud, adding that “all the players do it” and that even former coach Jose Mourinho followed a similar setup.
The trial, expected to last two days, could still be resolved through an out-of-court settlement, as previous cases involving footballers have resulted in suspended sentences.
Tax evasion crackdown
Ancelotti’s case is part of Spain’s intensified efforts to combat tax evasion, particularly targeting high-profile sports figures.
In 2019, Jose Mourinho received a one-year suspended sentence for tax fraud, while global football stars Lionel Messi and Cristiano Ronaldo were convicted but avoided prison time due to their first-time offender status.
The crackdown extends beyond football, with Colombian singer Shakira agreeing to a three-year suspended sentence and paying a 7.3 million euro fine in 2023.
Authorities accused her of evading 14.5 million euros in taxes, though she denied wrongdoing, claiming she was not a full-time resident in Spain during the period in question.
Career in jeopardy
Ancelotti, a two-time European Cup winner with AC Milan and a record five-time UEFA Champions League champion (three with Madrid, two with Milan), has had an illustrious managerial career. He has also won league titles across five countries, including Spain, England, Germany, France, and Italy.
After taking charge of Real Madrid in 2013, he led the club to their long-awaited “La Decima” – a 10th Champions League title – before leaving in 2015.
He later managed Bayern Munich, Napoli, and Everton before returning to Madrid in 2021.
Confident despite allegations
Speaking to reporters ahead of the trial, Ancelotti remained confident in the Spanish judicial system, calling the case an “old story” and expressing his hope for a swift resolution. “It upsets me if they believe I’ve committed fraud, but I will testify and hope to convince them otherwise,” he said.
As the trial unfolds, speculation remains over a potential settlement and whether Ancelotti will face any prison time.
Spain’s tax authority has already seized the disputed amount plus interest, raising the possibility of a resolution outside of court.