Real Madrid manager Carlo Ancelotti is set to face trial on Wednesday, accused of failing to report income to Spain’s tax authorities, marking the latest incident in a series of cases targeting sporting figures in the nation.
The prosecution is seeking a prison sentence of four years and nine months for the 65-year-old Italian, claiming that he has caused the Spanish treasury a loss exceeding one million euros (around $1.1 million) due to unreported earnings from image rights in 2014 and 2015.
Similar previous cases concerning football players have led to suspended sentences.
The trial will take place at the High Court of Justice in Madrid at 10am local time and is anticipated to last for two days.
The prosecution alleges that Ancelotti only reported the income received from Real Madrid in his tax returns during the specified two years, despite declaring himself a tax resident in Spain and stating that his home is in Madrid.
They claim he established a “confusing” and “complex” network of shell companies to conceal additional earnings during this period, including those from his image rights and other sources, such as real estate.
A judge overseeing the investigation noted that Ancelotti had “acknowledged” his actions that deprived the treasury of funds, according to a 2023 court document obtained by AFP. This revelation could potentially lead to a last-minute agreement with prosecutors to resolve the case without a trial and avoid prison time.
Ancelotti, who has achieved remarkable success as a coach with a record five Champions League trophies—three of which he won with Real Madrid—dismissed the situation last year as “an old story that I hope will be resolved soon.”
“I have confidence in the legal and justice system, so I am not worried,” he stated last week after the court confirmed the trial date.
“Of course, it’s a bit upsetting if they believe I have committed fraud, but I will attend and testify in hopes of convincing them otherwise.“
Spain’s Enforcement
Spain has intensified its enforcement against prominent football players who have failed to meet their tax obligations in recent years.
Former Real Madrid manager Jose Mourinho was handed a one-year suspended sentence after pleading guilty to tax fraud in 2019.
Both Lionel Messi and Cristiano Ronaldo were convicted of tax evasion, receiving prison sentences that were suspended due to being first-time offenders.
In 2023, Colombian superstar Shakira agreed to a three-year suspended sentence and a hefty fine of 7.3 million euros to resolve a tax fraud case and avoid trial.
She was accused by prosecutors of defrauding the Spanish government of 14.5 million euros in income earned between 2012 and 2014, although Shakira denied the charges, asserting that she only relocated to Spain full-time in 2015 while in a relationship with Barcelona defender Gerard Pique.
Ancelotti took the reins at Real Madrid in 2013, departing in May 2015 before moving to Bayern Munich the following season.
The former Italy international midfielder, who captured the European Cup twice with AC Milan during his playing career, later managed Napoli and Everton before returning to Real Madrid in 2021.
In addition to his Champions League achievements, he has also secured domestic league titles with Madrid and Milan, as well as in England with Chelsea, Germany with Bayern Munich, and France with Paris Saint-Germain.
Compiled by SportArena.com.au.
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