Ancelotti tax fraud trial to begin

Real Madrid coach Carlo Ancelotti will go on trial on Wednesday for allegedly failing to declare income to Spain’s tax office.

The latest in a string of such cases targeting sports figures in the country.

Prosecutors are seeking a jail term of four years and nine months for the 65-year-old Italian, accusing him of costing Spain’s treasury more than one million euros ($1.1 million) due to undeclared earnings from image rights in 2014 and 2015.

Previous similar cases involving footballers have resulted in suspended sentences. The trial at the High Court of Justice in Madrid at 10am local time and is expected to last two days.

Prosecutors accuse Ancelotti of only declaring in his tax returns the personal remuneration received from Real Madrid during those two years even though he declared himself a tax resident in Spain and indicated his home was in Madrid.

They allege he set up a “confusing” and “complex” system of shell companies to hide his extra earnings during this time from his image rights and other sources such as real estate.

A judge leading the investigation said Ancelotti had “acknowledged” the actions that deprived the treasury of money, according to a 2023 court document seen by AFP, which could open the door to a last-minute agreement with prosecutors to settle the case without trial and avoid prison.

Ancelotti, who as a coach has won a record five Champions League trophies including three with Real Madrid, dismissed the affair last year as “an old story that I hope will be resolved soon”.

“I have confidence in the legal and justice system, so I am not worried,” he added last week after the court set a date for his trial. “Of course it upsets me a little if they believe I have committed fraud, but I will go and testify hoping to convince them otherwise.”

Spanish crackdown
Spain has cracked down in recent years on top football players who have not paid their due. Former Real Madrid coach Jose Mourinho received a one-year suspended sentence after reaching a guilty plea for tax fraud in 2019.

Lionel Messi and Cristiano Ronaldo were both found guilty of tax evasion and received prison sentences that were waived for being first-time offenders.

Colombian superstar artist Shakira in 2023 agreed to receive a three-year suspended sentence and pay 7.3 million euros in fines to settle a tax fraud case and avoid trial.

Prosecutors had accused the “Hips Don’t Lie” singer of defrauding the Spanish state of 14.5 million euros on income earned between 2012 and 2014, charges Shakira had denied, saying she only moved to Spain full-time in 2015. She was in a relationship at the time with Barcelona defender Gerard Pique.

Ancelotti took over at Real Madrid in 2013, leaving in May 2015, before being appointed by Bayern Munich the following year. The former Italy international midfielder, who as a player won the European Cup twice with AC Milan, later managed Napoli and Everton before returning to Real Madrid in 2021.

Aside from his success in the Champions League, he has won domestic league titles with Madrid and Milan, in England with Chelsea, in Germany with Bayern Munich and in France with Paris Saint-Germain.