Real Madrid coach Carlo Ancelotti faces a possible prison sentence of four years and nine months for allegedly evading taxes in Spain.
According to a statement issued on Wednesday, the regional state prosecutor of Madrid accused the 64-year-old Italian of two counts of tax fraud related to his income from image rights between 2014 and 2015, which amounted to more than €1 million ($1.09m).
Ancelotti denied the charges after Madrid defeated RB Leipzig 2-1 on aggregate to advance to the quarterfinals of the Champions League.
“It’s an old story that started years ago,” he told Movistar. “The prosecutor’s office thinks that I was a resident [for tax purposes] and we think I wasn’t. I’ve paid the fine and the money is with the prosecutor’s office.
“I’m convinced that I’m innocent. Let’s see what the judge decides.”
According to the prosecutor’s statement, the Italian coach “failed to declare the income from his image rights that he had assigned to other entities” in his tax returns.
The prosecutor added that the Spanish Treasury estimated the loss based on the undeclared income and the refunds received at €1,062,079 (€386,361 for 2014 and €675,718 for 2015).
Ancelotti joined Real Madrid in 2013 and was sacked in 2015.
The former Chelsea and AC Milan coach came back to lead the Spanish club in June 2021. He recently extended his contract with Los Blancos until June 2026.
Many players and coaches have faced investigations by Spanish tax authorities in the past decade, often related to income from image rights.
In 2016, Lionel Messi was found guilty of tax fraud and fined to avoid a 21-month prison sentence.
Cristiano Ronaldo admitted to fraud in 2019 and agreed to pay a €19m fine.
In 2019, Xabi Alonso was cleared of fraud — a verdict that was confirmed by Spain’s Supreme Court in 2021 — after the court ruled that he did not try to conceal income by transferring his image rights to a foreign company.