Real Madrid manager Carlo Ancelotti faces tax evasion trial in Spain

Real Madrid manager Carlo Ancelotti has appeared in court for his alleged tax evasion trial.

According to Mundo Deportivo, the Italian spent over two and a half hours inside a courthouse in Madrid before telling reporters ‘all is well’ upon leaving.

Spanish prosecutors accuse Ancelotti of defrauding the state of €1 million in taxes between 2014 and 2015.

They allege that he used shell companies, including one registered in the Virgin Islands, to hide earnings related to his image rights.

The prosecution is pushing for a prison sentence of up to four years and nine months on two counts of tax fraud. However, Ancelotti has denied any wrongdoing from the start.

The case started in March last year when Ancelotti insisted that he was not a fiscal resident of Spain for part of that period, but Spanish authorities disagreed.

“I already paid the fine, the money is with them, and now the lawyers are talking to try to find a solution,” Ancelotti said in March 2024. “Let’s see what the judge says.”

Ancelotti is the latest high-profile football figure to face legal action over taxes in Spain. 

The country’s tax authorities have been cracking down on financial irregularities involving major players and coaches for years.

Former Madrid manager Jose Mourinho received a one-year suspended sentence in 2019 after agreeing a plea deal, while Cristiano Ronaldo and Lionel Messi were also convicted of tax fraud.

Both players avoided prison by paying hefty fines. 

Ronaldo settled his case in 2019 by agreeing to pay nearly €19m, while Messi and his father were found guilty of defrauding the Spanish state of €4.1m but avoided jail by accepting financial penalties.

One of the few football figures to successfully challenge tax fraud accusations was former Madrid midfielder Xabi Alonso, who was acquitted in court.

Ancelotti’s trial comes in the midst of a campaign where Madrid are challenging for honours on multiple fronts.

They beat Real Sociedad to reach the Copa del Rey final and are also in the mix for the La Liga and Champions League titles.