Real Madrid manager Carlo Ancelotti is set to appear in court on Wednesday to face trial over allegations of defrauding Spain’s tax authorities of more than €1 million (£836,857) in undeclared image rights earnings between 2014 and 2015.
Prosecutors are pushing for a prison sentence of four years and nine months, accusing the 65-year-old Italian coach of using offshore companies to obscure the true beneficiary of his image rights income. Despite being classified as a Spanish tax resident at the time, Ancelotti is alleged to have only declared his salary from Real Madrid while failing to report earnings from his image rights. The prosecution claims he owes €1,062,079 in taxes on image rights revenues of €1.24 million in 2014 and €2.96 million in 2015.
The trial, taking place in Madrid, is expected to last two days. Ancelotti, the most decorated manager in Champions League history, has firmly denied the accusations. Speaking to reporters last Friday, he expressed confidence in the legal system, stating:
“I have total confidence in the law and in justice. I’m not worried but I am obviously annoyed if they say that I’ve committed fraud. Once again, I have total confidence in justice. I’m really looking forward to testifying on Wednesday.”
Ancelotti joins a long list of high-profile football figures who have been pursued by Spanish tax authorities in recent years. In 2016, Lionel Messi and his father, Jorge, received a 21-month suspended prison sentence for tax evasion related to image rights earnings while at Barcelona, though they avoided jail due to Spanish sentencing rules.
Cristiano Ronaldo, while playing for Real Madrid, admitted to tax fraud in 2018 and agreed to pay an €18.8 million (£16.5 million) fine as part of a settlement that resulted in a 23-month suspended sentence. Former Madrid manager José Mourinho faced similar legal troubles, accepting a one-year suspended sentence and paying €2.2 million (£1.9 million) in fines for tax fraud.
Atlético Madrid forward Diego Costa also settled tax fraud charges in 2020, paying €543,208 after admitting to failing to declare payments from his 2014 transfer to Chelsea.
The case against Ancelotti comes in the wake of other high-profile tax disputes in Spain, including those involving Colombian singer Shakira and former Barcelona defender Gerard Piqué. Shakira settled her case in 2023 by paying a fine of over €7.3 million, while Piqué was initially fined €2.1 million before the Spanish Supreme Court annulled the penalty in 2021.
Ancelotti’s trial outcome remains uncertain, but it adds another chapter to the ongoing scrutiny of football’s biggest names by Spanish tax authorities.