Real Madrid coach Carlo Ancelotti appeared in a Spanish court on Wednesday, testifying in a trial where he is accused of evading taxes on image rights revenue, amounting to one million euros ($1.08 million). Ancelotti, who is facing charges for tax evasion in 2014 and 2015, told the court that he believed his tax affairs were fully compliant with the law.
“For me, everything was in order,” Ancelotti stated during his testimony. “I never thought about committing fraud.” The Italian coach explained that when he joined Real Madrid, he was offered a net salary of six million euros, and he left the structuring of his finances to the club and his British adviser, which he considered a normal practice at the time.
Ancelotti is the latest high-profile figure in the soccer world to be investigated by the Spanish tax authority for alleged tax fraud, following in the footsteps of other sports stars such as Cristiano Ronaldo and Xabi Alonso. While some players, including Ronaldo, settled their cases with large fines, others like Alonso chose to defend their innocence in court. The Supreme Court upheld Alonso’s acquittal in 2023.
The prosecutor in Ancelotti’s case is seeking a prison sentence of four years and nine months, along with a fine of 3.2 million euros (nearly $3.5 million) for two counts of tax evasion. They argue that Ancelotti failed to report income from his image rights in his tax returns, only declaring his salary paid by Real Madrid.
Ancelotti defended his actions, emphasizing that image rights were not as significant for coaches as they are for players, who can profit from merchandise sales like shirts. “For coaches, (image rights) don’t mean the same as they do for players because they don’t sell shirts,” Ancelotti explained in court.
Before the hearing, the prosecutor confirmed that Spain’s tax authority had seized the debt and interest from Ancelotti. Although a verdict is expected in the coming weeks, there remains a possibility that the case could be settled out of court.
Ancelotti’s family, including his wife Mariann, son Davide, and stepdaughter Chloe, also testified during the hearing.
Ancelotti, a former player and World Cup participant, returned to coach Real Madrid in 2021 for his second stint at the club. He has won the prestigious Champions League five times, twice with AC Milan and three times with Real Madrid.
