by Ajadi Ashraf, Kaduna.
Real Madrid head coach Carlo Ancelotti has denied any intention to commit tax fraud during the opening day of his trial for allegedly failing to declare income to Spain’s tax authorities. The 65-year-old Italian is accused of evading over one million euros ($1.1 million) in taxes by not declaring earnings from image rights during his first spell at the club between 2014 and 2015.
Prosecutors are seeking a sentence of four years and nine months for Ancelotti, claiming he only declared his salary from Real Madrid while omitting earnings from his image rights in his tax returns. They also allege that he created a complex system of shell companies to hide additional earnings, including from real estate deals.
However, Ancelotti, appearing in the High Court of Justice in Madrid, stated that the payment structure in question had been proposed by Real Madrid and was commonly used by players and coaches at the club, including former manager José Mourinho. “When the club suggested it to me, I put Real Madrid in touch with my advisor. I didn’t deal with it because I had never been paid that way,” Ancelotti explained. He further denied any knowledge that the system was designed to reduce his tax payments, adding, “I never realized that something wasn’t right… I never considered committing fraud.”
The trial is expected to last two days, with the possibility of an out-of-court settlement. Previous similar cases involving footballers have resulted in suspended sentences, often after reaching agreements.
Ancelotti arrived at court with his wife Mariann Barrena and son Davide, who serves as his assistant at Real Madrid. He stressed that at the time, the system seemed normal, as “all the players and coaches were doing it that way.”
Spain has been cracking down on high-profile sports figures involved in tax fraud. Previous cases include José Mourinho, who received a one-year suspended sentence in 2019, and football stars Lionel Messi and Cristiano Ronaldo, who were both found guilty of tax evasion and received waived prison sentences due to their first-time offender status.
Colombian singer Shakira also faced tax fraud charges and settled in 2023, agreeing to a three-year suspended sentence and a fine of 7.3 million euros.
Ancelotti, who took over at Real Madrid in 2013 and left in 2015, returned to the club in 2021. He has had a successful managerial career, winning domestic league titles in Italy, England, France, and Germany, as well as multiple UEFA Champions League trophies.
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