Brazil national team coach and former Real Madrid manager Carlo Ancelotti has been sentenced to one year in prison by a Spanish court after being found guilty of tax fraud related to image rights earnings during his time at Real Madrid.
The Provincial Court of Madrid determined that Ancelotti failed to declare €386,361 in income from image rights in 2014. However, the 65-year-old Italian coach is unlikely to serve time behind bars, as Spanish law typically suspends custodial sentences of two years or less for non-violent, first-time offenders.
Image Rights at the Center of the Case
The case centered on Ancelotti’s tenure at Real Madrid from 2013 to 2015. Prosecutors alleged that he used a complex structure involving offshore entities to shield earnings from Spanish tax authorities. Ancelotti was acquitted of similar charges from 2015, with the court acknowledging partial compliance for that tax year.
Ancelotti had already repaid the outstanding tax debt and associated penalties—amounting to nearly €400,000—in December 2021, which the court took into consideration as a mitigating factor in its ruling.
Ancelotti Denies Intentional Fraud
During his testimony earlier this year, Ancelotti stated that he had relied on financial advisors and club lawyers to manage his tax filings, and claimed he was unaware of any wrongdoing.
“I never thought a fraud could have been committed,” he told the court in April. “I signed where I was told, and I trusted that everything was being handled correctly.”
Broader Pattern in Spanish Football
Ancelotti’s case is the latest in a string of high-profile tax investigations involving football figures in Spain. Both Lionel Messi and Cristiano Ronaldo have faced similar charges in recent years, receiving suspended sentences and heavy fines for tax evasion tied to image rights.
Legal experts say these cases underscore how aggressively Spanish authorities have pursued cases of undeclared earnings in the sport, particularly during the 2010s when many foreign players and coaches employed complex tax structures.
What Happens Next?
Despite the headline-grabbing sentence, Ancelotti is expected to remain free and continue his coaching duties with Brazil. The sentence is non-custodial, meaning no prison time is expected unless a future offense occurs.
Ancelotti, who recently left Real Madrid after winning a record-extending Champions League title in 2024, took over as Brazil’s national team coach earlier this year.
