On Wednesday, Real Madrid’s head coach, Carlo Ancelotti, appeared in court in Spain as his trial for alleged tax evasion commenced. The esteemed Italian football manager, dressed in his characteristic dark blue suit, spent approximately two and a half hours in the courthouse situated in Madrid. After his court appearance, Ancelotti briefly addressed the media with a reassuring “all is well” as he departed in a vehicle.
Spanish authorities have charged Ancelotti with evading approximately 1 million euros (equivalent to around $1 million) in taxes during the years 2014 and 2015. The prosecution is seeking a stringent sentence of up to four years and nine months, charging him with two separate counts of tax fraud. Prosecutors contend that Ancelotti utilized shell companies to obscure the actual magnitude of his earnings, citing, for example, a particular entity in the Virgin Islands that reportedly engaged in no substantive economic activities.
Ancelotti has consistently maintained his innocence regarding these allegations. Since the initial accusations surfaced, he has insisted that during a portion of the time in question, he was not fiscally domiciled in Spain, a claim prosecutors dispute. In March 2024, Ancelotti stated, “I already paid the fine, the money is with them, and now the lawyers are talking to try to find a solution. Let’s see what the judge says.”
At 65 years of age, Ancelotti boasts a remarkable coaching career in football. His accolades include clinching the Champions League title five times, thrice with Real Madrid and twice with AC Milan. Additionally, he holds the unique distinction of having won the domestic league championship in five different countries — England, Spain, Italy, Germany, and France. Ancelotti initially managed Real Madrid from 2013 to 2015 and reenlisted as their coach in 2021.
The case against Ancelotti places him among a series of high-profile soccer figures embroiled in investigations by Spanish authorities concerning unpaid taxes, although none have been imprisoned as of yet. In Spain, first-time offenders can receive a suspended sentence if it is under two years, thus avoiding jail time.
Several football icons have faced similar allegations in the past. Former Real Madrid coach, Jose Mourinho, accepted a one-year suspended sentence following a guilty plea in 2019. Similarly, renowned players like Lionel Messi and Cristiano Ronaldo have been convicted of tax fraud in Spain. These cases often involve accusations of employing foreign shell companies to conceal earnings from image rights. Most of those accused, including Messi and Ronaldo, have negotiated settlements with tax authorities, accepting guilt to mitigate their sentences.
For instance, Ronaldo agreed to pay a fine close to 19 million euros (about $21.6 million at the time) in 2019 alongside a two-year suspended sentence, which he was not required to serve. Messi and his father resolved their case by paying significant fines after being found guilty of defrauding tax authorities of 4.1 million euros (approximately $4.6 million). Conversely, former Real Madrid player Xabi Alonso is an exception, having stood trial and being acquitted of tax evasion charges.