Spanish state prosecutors have requested a jail term of four years and nine months for Real Madrid coach Carlo Ancelotti for the Italian’s alleged defrauding of the country’s tax office. In a statement released on Wednesday, Madrid’s regional state prosecutor accused Ancelotti, 64, of two counts of tax fraud from 2014 to 2015 regarding his earnings for image rights that add up to over €1 million ($1.09m).
The statement said that in his income tax filings, the Italian coach “omitted the income corresponding to the exploitation of his image rights that he had transferred to other entities.” The Spanish Treasury calculated the loss incurred taking into account rents and income omitted and refunds obtained at €1,062,079 (€386,361 in fiscal year 2014 and €675,718 in fiscal year 2015).
Numerous players and coaches have been investigated by Spanish tax authorities over the past decade, often involving income from image rights. In 2016, Lionel Messi was convicted of tax fraud and handed a fine to avoid a 21-month prison sentence. Cristiano Ronaldo pleaded guilty to fraud in 2019 and agreed to pay a €19m fine. That same year, Xabi Alonso was acquitted of fraud — in a verdict which was ratified by Spain’s Supreme Court in 2021 — after the court found that he had not sought to hide income by transferring his image rights to an overseas company.
Ancelotti joined Real Madrid in the summer of 2013 before being dismissed in May 2015. The former Chelsea and AC Milan coach returned to take the helm at the Spanish giants in June 2021. He recently signed a new contract with Los Blancos until June 2026.
The alleged tax fraud case against Carlo Ancelotti is a stark reminder of the ongoing issues related to tax evasion in the world of football. It is crucial for players and coaches to abide by tax laws and regulations to avoid legal troubles. The outcome of the case against Ancelotti remains to be seen, but it highlights the need for transparency and compliance in financial matters within the sports industry.