Spain Prosecutors Target Real Madrid’s Ancelotti for Tax Offenses

In a legal development unfolding in Spain on Wednesday, prosecutors have levied a demand for the incarceration of Carlo Ancelotti, the esteemed coach of Real Madrid, for a duration of four years and nine months. The accusation centers around his alleged failure to disclose earnings to the tax authorities.

The office of the Madrid state prosecutor has pointed fingers at the 64-year-old Italian, asserting that his actions have led to a shortfall of over one million euros in unreported earnings from his image rights during the years 2014 and 2015.

A statement issued by the tax authorities delineated the discrepancy, highlighting that despite Ancelotti declaring himself a tax resident in Spain and stating Madrid as his domicile, his tax filings only accounted for personal remunerations received from Real Madrid.

The accusations further assert that Ancelotti purportedly orchestrated a convoluted scheme involving shell companies to obscure his supplementary income from image rights. Prosecutors allege that the coach engaged in the fabrication of transactions to transfer his image rights to entities devoid of any substantive operation, located outside of Spain, in order to obfuscate his financial dealings vis-à-vis the Spanish tax authorities.

The legal saga surrounding Ancelotti commenced in July when a Spanish court decreed that he must stand trial over these allegations; however, a trial date is yet to be scheduled.

Spain has been vigilant in its pursuit of tax offenders in recent times, with notable cases involving football luminaries such as Lionel Messi and Cristiano Ronaldo, both of whom faced legal consequences for tax evasion. Despite being convicted, their sentences were commuted owing to their status as first-time offenders.

In a similar vein, Colombian singer Shakira reached an agreement in November to receive a suspended sentence of three years and pay fines amounting to 7.3 million euros to resolve a tax fraud case, thereby averting a trial. Prosecutors had accused the artist known for “Hips Don’t Lie” of defrauding the Spanish exchequer of 14.5 million euros in income earned between 2012 and 2014, allegations which Shakira vehemently denied, citing her relocation to Spain on a full-time basis only in 2015.

Ancelotti’s coaching trajectory saw him take the reins at Real Madrid in 2013, departing in May 2015, before assuming managerial positions at Bayern Munich the subsequent year, followed by stints at Napoli and Everton, and eventually returning to Real Madrid in 2021.

Speculation surrounded Ancelotti’s potential appointment as the coach of Brazil’s national team upon the expiration of his contract with Real Madrid; however, in December, he opted to extend his tenure with the club until June 2026.

A decorated figure in the realm of football, Ancelotti boasts four Champions League titles, two each with AC Milan and Real Madrid. His managerial prowess has also yielded domestic league triumphs in Spain and Italy, as well as in England, Germany, and France.

Real Madrid is slated to face RB Leipzig in a pivotal Champions League last-16 second leg encounter on Wednesday, following their slender 1-0 victory in Germany under Ancelotti’s tutelage.