In a significant development in the world of football, Carlo Ancelotti, the renowned Italian manager and former head coach of Real Madrid and Chelsea, has been sentenced to a one-year prison term for tax fraud related to the 2014 fiscal year, according to a report by EFE Noticias.
The ruling, announced on July 9, 2025, stems from charges that Ancelotti concealed income related to his image rights during his first tenure with Real Madrid. However, he was acquitted of a similar charge for the 2015 fiscal year.
#ÚLTIMAHORA | Carlo Ancelotti, condenado a un año de cárcel por fraude a Hacienda en 2014. pic.twitter.com/RzKr7k3CmI
— EFE Noticias (@EFEnoticias) July 9, 2025
Background of the Case
The case centres on allegations that Ancelotti, 65, defrauded Spain’s tax authorities of over €1 million ($1.08 million) in undeclared earnings from his image rights in 2014 and 2015. Spanish prosecutors accused the legendary coach of using a complex network of shell companies, including one based in the Virgin Islands, to obscure the true beneficiary of his image rights income, thereby evading taxes.
Ancelotti, who coached Real Madrid from 2013 to 2015 before returning in 2021, was charged in 2020.
Prosecutors initially sought a prison sentence of four years and nine months, along with a €3.2 million fine, claiming that Ancelotti only declared his salary from Real Madrid while omitting significant income from image rights, which amounted to €1.24 million in 2014 and €2.96 million in 2015.
During the trial, which took place over three days in April 2025, Ancelotti maintained his innocence, stating that he believed his financial affairs were in order and that he had entrusted them to his advisors. He testified that Real Madrid had suggested a contractual structure where 15% of his annual €6 million net salary was allocated to image rights, a practice he believed was standard at the time. “I never thought about committing fraud,” Ancelotti told the court, emphasizing that he had no intention of defrauding the Spanish treasury.
The Verdict
According to EFE Noticias, the Spanish court found Ancelotti guilty of tax fraud for the 2014 fiscal year, sentencing him to one year in prison. The court determined that he had intentionally omitted income from his image rights, resulting in a tax loss of €381,361 for that year. However, Ancelotti was acquitted of the 2015 charge, which involved €675,718 in alleged unpaid taxes.
Notably, under Spanish law, sentences of less than two years for first-time, non-violent offenders are typically suspended, meaning Ancelotti is unlikely to serve actual jail time. This aligns with precedents involving other high-profile football figures in Spain, such as Lionel Messi, Cristiano Ronaldo, and José Mourinho, who all received suspended sentences for similar tax-related offenses.
Defense and Context
Ancelotti’s defense argued that the responsibility for the tax irregularities lay with Real Madrid, which had structured his contract to include image rights payments to minimize tax liabilities. His lawyer, Carlos Zabala, described the arrangement as “contractual nonsense” orchestrated by the club, asserting that Ancelotti did not fully understand the implications of the agreements he signed. The defense also presented evidence suggesting that Ancelotti spent fewer than 183 days in Spain in 2015, potentially exempting him from tax residency status for that year, which may have contributed to his acquittal for 2015.
The case has drawn attention to Spain’s ongoing crackdown on tax evasion among high-profile football figures. In recent years, stars like Messi, Ronaldo, and Diego Costa, as well as managers like Mourinho, have faced similar charges, often resolving their cases through hefty fines and suspended sentences. For instance, Ronaldo paid a €18.8 million fine in 2019 for a 23-month suspended sentence, while Messi settled a €4.1 million tax fraud case with fines and a 21-month suspended sentence in 2016.
Ancelotti’s Response and Implications
Ancelotti has consistently expressed confidence in the Spanish judicial system, stating before the trial, “I have total confidence in the law and in justice.” He also noted that he had already paid the disputed €1.5 million debt, plus interest, to the Spanish tax authorities before the trial began. Despite the conviction, Ancelotti’s legal team may still appeal the ruling, and the suspended nature of the sentence suggests he will continue his duties as Brazil's head coach without immediate disruption.
The verdict comes at a time when Ancelotti remains one of football’s most decorated managers, with a record five Champions League titles and domestic league titles in Spain, Italy, England, Germany, and France. His last stint at Real Madrid has been marked by continued success, including two LaLiga and Champions League doubles since his return in 2021.
Broader Context
The case underscores Spain’s aggressive stance on tax compliance within the football industry, where complex financial structures involving image rights have become a focal point for investigations. Ancelotti’s conviction adds to a growing list of high-profile cases, raising questions about the financial practices of clubs and their advisors.
As the football world digests this news, Ancelotti’s legacy as a manager remains intact, but the conviction serves as a reminder of the scrutiny faced by sports figures in navigating complex tax obligations. For now, the Italian coach is expected to focus on leading Brazil, with the legal matter unlikely to result in immediate professional consequences due to the suspended sentence.
