In a significant legal outcome from Spain, distinguished football manager Carlo Ancelotti has been convicted of tax evasion. The charge pertains to his failure to properly declare income from image rights during the 2014 fiscal year, a period corresponding with his initial tenure managing Real Madrid. Following proceedings in a Madrid court, Ancelotti received a sentence of one year in prison along with a fine amounting to €386,361.
While a prison sentence has been handed down, it is widely anticipated that Ancelotti will not be required to serve jail time. Spanish legal precedent often allows for sentences under two years for non-violent, first-time offenders to be suspended. This aligns Ancelotti`s situation with outcomes seen in previous high-profile tax cases involving other prominent figures in Spanish football.
The core of the case centered on the 2014 financial year. Notably, the subsequent fiscal year (2015) was not included in the charges, reportedly because Ancelotti`s residency in Spain was not deemed sufficient to trigger the same tax obligations after his departure from Real Madrid in May 2015. The court heard the case in early April in Madrid, concluding with the verdict and sentencing.
During the legal process, it was confirmed that the outstanding tax debt has since been settled. Ancelotti`s defense argued that the responsibility for correct tax withholding rested with the club and asserted that he lacked the intent to commit fraud. Despite the prosecution initially seeking a much more severe penalty—four years and nine months in prison, alongside a €3.2 million fine—the final sentence reflects a substantial reduction from these initial demands.
This case serves as another example of Spanish tax authorities rigorously pursuing high-earning individuals, particularly in the sports sector, over undeclared income, frequently involving complex image rights arrangements. While Ancelotti returned for a successful second spell at Real Madrid starting in 2021, those later years were not under scrutiny in this particular legal action, which focused specifically on the 2014 period.
