Carlo Ancelotti, the manager of Real Madrid, is confronting the possibility of a jail sentence of four years and nine months following accusations of tax fraud exceeding €1 million (£854,000) by Spanish authorities.
Prosecutors assert that Ancelotti neglected to declare income from image rights during his initial tenure as Real Madrid’s coach between 2013 and 2015. They allege that he diverted these funds to both the club and an unspecified London-based company named Vapia LLP.
Court documents accuse Ancelotti of evading taxes amounting to €381,361 (£325,821) in 2014 and €675,718 (£577,309) in 2015 by failing to disclose earnings derived from his image rights.
The Madrid Provincial Prosecutors’ Office contends that Ancelotti engaged in deceptive practices by purportedly transferring his image rights to entities with minimal activity in foreign countries. This strategy, they claim, aimed to evade taxation on substantial sums received both in Spain and abroad.
Carlo Ancelotti, 64, holds the distinction of being the only coach to have secured the Champions League title four times, twice with Real Madrid and twice with AC Milan. Additionally, he is the sole coach to have clinched domestic league championships in England, Spain, Italy, Germany, and France.
This development adds Ancelotti to a list of prominent figures in Spanish football embroiled in tax controversies in recent years. Notable names include former managers Jose Mourinho, Cristiano Ronaldo, and Lionel Messi, all of whom faced legal proceedings or financial penalties related to tax issues.
Ancelotti’s tax predicament emerged amid his preparations for Real Madrid’s Champions League round of 16 second-leg clash against RB Leipzig. The club secured a 1-0 victory in the first leg in Germany, with Brahim Diaz netting the decisive goal in place of the injured Jude Bellingham.
As of now, Ancelotti has not issued an official response, and a trial date has yet to be scheduled.
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