Prosecutors Continue Push for Over Four-Year Jail Sentence for Ancelotti Over Tax Fraud Case

The trial for tax fraud involving Real Madrid manager Carlo Ancelotti concluded on Thursday in Spain, with public prosecutors calling for a prison sentence of four years and nine months. He faces accusations of concealing income from tax authorities.

Ancelotti, who has achieved the remarkable feat of securing five Champions League titles as a coach, including three with the Madrid club, is alleged to have evaded tax payments exceeding one million euros (£854,000) related to undeclared income from image rights during 2014 and 2015, during his initial tenure at Real Madrid.

Prosecutors claim that he established a “confusing” and “complex” network of shell companies to conceal his additional income from image rights and other ventures, such as real estate investments, only disclosing his salary.

“We consider the acts of fraud, concealment, and omission have been clearly demonstrated,” remarked the lead prosecutor in his closing statements at the High Court of Justice in Madrid, reinforcing the call for a prison term of four years and nine months.

According to Spain’s judicial process, prosecutors have the latitude to modify charges and the proposed penalties based on the evidence presented during the trial.

The 65-year-old Ancelotti refuted claims of intentional tax fraud when he testified on the opening day of the trial on Wednesday.

He explained to the court that, following the advice of the club, a company was established at the time of his signing with Real Madrid to manage 15 per cent of his annual salary of six million euros as image rights, asserting he was unaware this arrangement resulted in reduced tax obligations.

“At that time, it was common practice among players and coaches, and it seemed appropriate,” he stated, noting that former Real Madrid manager Jose Mourinho had a similar set-up.

‘Public Humiliation’

In her closing remarks, Ancelotti’s defence attorney argued that their client “did not fully grasp what he was signing,” urging the court to acquit the Real Madrid manager.

The case might have been resolved prior to reaching court, but the Spanish tax authorities appeared keen to impose a “public humiliation” on Ancelotti, the lawyer suggested.

Previous instances involving football figures have often ended in suspended sentences, commonly through out-of-court settlements.

In recent years, Spain has intensified its scrutiny of football stars failing to meet their tax responsibilities.

Mourinho received a one-year suspended sentence in 2019 after admitting to tax fraud.

Both Lionel Messi and Cristiano Ronaldo faced convictions for tax evasion and received prison terms that were suspended due to their status as first-time offenders.

Ancelotti joined Real Madrid in 2013 and departed in May 2015, going on to manage Bayern Munich the following year.

Having enjoyed a successful playing career as an international midfielder with Italy, where he twice won the European Cup with AC Milan, Ancelotti also led Napoli and Everton before returning to Real Madrid in 2021.

In addition to his Champions League triumphs, he has clinched domestic league titles with Madrid, Milan, Chelsea in England, Bayern Munich in Germany, and Paris Saint-Germain in France.