In brief
Carlo Ancelotti faces tax evasion allegations linked to his time managing Real Madrid, declaring he acted appropriately in financial matters.
Real Madrid's head coach, Carlo Ancelotti, recently testified in a Spanish court regarding serious tax evasion allegations that could have significant legal ramifications. The Italian football manager, who is accused of neglecting to report over 1 million euros (£830,000) in taxes during his initial term with Real Madrid from 2013 to 2015, maintained his stance of innocence throughout the proceedings. Ancelotti stated unequivocally, "I never thought about committing fraud," as he defended his financial practices before the Provincial Court of Madrid. The prosecution has positioned a stern case against him, seeking a hefty prison sentence of four years and nine months, compounded by a fine amounting to 3.2 million euros (£2.7 million). Central to the allegations is Ancelotti’s purported omission of income derived from his image rights, reporting only his salary received from the club. He clarified in court, "For me, everything was in order," attributing salary structure decisions to his financial advisors, while emphasizing that at the time, similar practices were commonplace among other players and coaches. Ancelotti articulated that he was offered a net salary of 6 million euros (£5.1 million), which he believed reflected standard procedures in football management. Notably, he expressed that image rights do not hold the same weight for managers as they do for players, stating, "For coaches [image rights] don't mean the same as they do for players because they don't sell shirts." The issue of tax evasion within football has been a recurring theme in Spain, with several of the sport's elites facing similar charges. High-profile cases include that of Lionel Messi, who faced a fine for tax evasion in 2017, and Cristiano Ronaldo, who accepted an out-of-court settlement amounting to 18.8 million euros in 2019 for similar issues. Ancelotti’s case raises questions surrounding financial accountability in the world of football management and the potential consequences should he be found guilty.
