Carlo Ancelotti Faces Potential Prison Sentence for Tax Fraud
Spanish prosecutors demand 4 years and 9 months of imprisonment for the Real Madrid coach over tax evasion allegations.
Carlo Ancelotti, the renowned head coach of Real Madrid, risks a lengthy prison sentence due to allegations of tax fraud in Spain.
On April 3, prosecutors officially requested a sentence of four years and nine months after a trial described by Ancelotti's lawyer as a "public humiliation." Ancelotti, 65, is accused of defrauding the Spanish Treasury of over one million euros during his first tenure at the club from 2013 to 2015.
During the proceedings, the prosecutor stated, "We believe that the facts of fraud, concealment, and omission are proven," and criticized Ancelotti's claim of ignorance regarding his tax obligations.
Ancelotti's defense argues that the financial issues stemmed from a contractual misunderstanding induced by Real Madrid's decision to partially pay his salary through image rights to benefit from favorable tax treatment.
His lawyer, Carlos Zabala, contended that Ancelotti "did not fully understand what he was signing," advocating for his acquittal.
In his testimony, Ancelotti asserted that he never intended to commit fraud and that it was the club that recommended compensating him with a portion of his six million euros net annual salary as image rights.
He claimed, "I never realized that something was not right" until an investigation began in 2018. Ancelotti pointed out that similar practices were common among players, citing his predecessor José Mourinho as an example, who had engaged in similar arrangements.
Mourinho himself faced legal repercussions, having been sentenced to one year in prison (suspended) and fined nearly two million euros after pleading guilty to tax fraud in Spain for failing to declare income from image rights exploitation through a network of companies.
The prosecution estimated that Ancelotti received 1.24 million euros in 2014 and 2.96 million euros in 2015 from his image rights, which are central to the current legal dispute.
The prosecutor described Ancelotti's omissions in his tax declarations as deliberate, accusing him of employing a "complex" and "bewildering" network of trusts and shell companies to channel his image rights earnings.
The Madrid Superior Court, which has been presiding over the case, has reserved its decision.
This case is part of a broader trend in which several high-profile athletes and celebrities, including football stars Lionel Messi and Cristiano Ronaldo, as well as Colombian singer Shakira, have encountered legal issues with the Spanish tax authorities in recent years.
On April 3, prosecutors officially requested a sentence of four years and nine months after a trial described by Ancelotti's lawyer as a "public humiliation." Ancelotti, 65, is accused of defrauding the Spanish Treasury of over one million euros during his first tenure at the club from 2013 to 2015.
During the proceedings, the prosecutor stated, "We believe that the facts of fraud, concealment, and omission are proven," and criticized Ancelotti's claim of ignorance regarding his tax obligations.
Ancelotti's defense argues that the financial issues stemmed from a contractual misunderstanding induced by Real Madrid's decision to partially pay his salary through image rights to benefit from favorable tax treatment.
His lawyer, Carlos Zabala, contended that Ancelotti "did not fully understand what he was signing," advocating for his acquittal.
In his testimony, Ancelotti asserted that he never intended to commit fraud and that it was the club that recommended compensating him with a portion of his six million euros net annual salary as image rights.
He claimed, "I never realized that something was not right" until an investigation began in 2018. Ancelotti pointed out that similar practices were common among players, citing his predecessor José Mourinho as an example, who had engaged in similar arrangements.
Mourinho himself faced legal repercussions, having been sentenced to one year in prison (suspended) and fined nearly two million euros after pleading guilty to tax fraud in Spain for failing to declare income from image rights exploitation through a network of companies.
The prosecution estimated that Ancelotti received 1.24 million euros in 2014 and 2.96 million euros in 2015 from his image rights, which are central to the current legal dispute.
The prosecutor described Ancelotti's omissions in his tax declarations as deliberate, accusing him of employing a "complex" and "bewildering" network of trusts and shell companies to channel his image rights earnings.
The Madrid Superior Court, which has been presiding over the case, has reserved its decision.
This case is part of a broader trend in which several high-profile athletes and celebrities, including football stars Lionel Messi and Cristiano Ronaldo, as well as Colombian singer Shakira, have encountered legal issues with the Spanish tax authorities in recent years.
