Real Madrid manager Carlo Ancelotti will appear in court on Wednesday to face charges of tax fraud, the latest Spanish football figure to be accused of financial impropriety.
Prosecutors charge the 65-year-old Italian with not reporting more than €1 million ($1.1 million) in image rights income from his initial spell at Real Madrid between 2014 and 2015. They allege Ancelotti reported his wages but not earnings from sponsorships, image rights, and other income streams. Officials also accuse him of using a “sophisticated” web of shell companies to cover up his other earnings.
Asking for a four-year, nine-month prison sentence and a €3.2 million fine, prosecutors have strengthened Spain’s push against tax avoidance in football. The trial is to be conducted over two days at Madrid’s High Court of Justice, but a final-hour agreement cannot be ruled out. The Spanish tax agency has already confiscated the disputed sum with interest, fuelling speculation that a deal short of imprisonment might be reached.
Football’s Tax Scandals
Ancelotti is not the first football personality involved in Spain’s tax wars. Ex-Real Madrid boss Jose Mourinho was handed a one-year suspended sentence in 2019 after he pleaded guilty, while football legends Lionel Messi and Cristiano Ronaldo were also found guilty of tax fraud but did not receive jail time as first-time offenders.
Outside of football, Colombian pop artist Shakira was accused of tax fraud, finally resolving her case in 2023 with a three-year suspended sentence and €7.3 million payment. She protested her innocence, saying she was not a full-time resident of Spain at the time in question.
A Decorated Career Under Scrutiny
Ancelotti, a two-time European Cup-winning player for AC Milan, has won historic glory as a manager. He is the record holder for most UEFA Champions League titles as a manager, with five—three with Real Madrid and two with Milan.
Having won league titles in Spain, England, Germany, France, and Italy, he has coached top clubs such as Chelsea, Bayern Munich, and Paris Saint-Germain. Ancelotti initially took the reins at Real Madrid in 2013, guiding them to their much-awaited “La Decima” (10th Champions League title) before leaving in 2015. He then coached Bayern Munich, Napoli, and Everton before making a return to Madrid with a hero’s welcome in 2021.
Speaking to reporters last week, Ancelotti downplayed the case, expressing faith in Spain’s judicial system. “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.
