Carlo Ancelotti Faces Shocking Verdict in Tax Fraud Trial

Madrid's Provincial Court has sentenced Brazil's national team coach Carlo Ancelotti to one year in prison and imposed a €386,000 ($375,000) penalty for tax violations dating back to 2014.

The tribunal determined that Ancelotti was guilty of failing to declare tax on income from image rights during his first season managing Real Madrid more than ten years ago. Prosecutors contended that the 66-year-old coach only disclosed his salary in Spanish tax filings, omitting his image-rights earnings.

Ancelotti attended court proceedings in April to challenge the accusations, however the court sided with the Public Treasury.

The former Real Madrid manager is unlikely to serve actual jail time; first-time offenders in Spain for non-violent offenses typically receive suspended sentences. Given that his prison term is less than two years, Ancelotti will probably only need to pay the financial penalty.

Ancelotti faced similar accusations for 2015, his second season at Real Madrid, but was cleared of those charges. However, his single conviction prevents him from receiving public assistance and any tax or Social Security benefits for three years.

Ancelotti's sentencing occurred three months following his court appearance during his last season leading the world's most prestigious club. The coach departed the Spanish capital in May after a total of six seasons with Real Madrid to assume control of Brazil's national team.

Various high-profile managers and players have faced scrutiny from Spanish tax authorities for evasion, including Cristiano Ronaldo, Diego Costa and Xabi Alonso. The last mentioned was cleared of all charges in 2019.