Ancelotti Handed One-Year Sentence in Tax Case
On Wednesday, July 9, 2025, a Spanish court sentenced Carlo Ancelotti, the current head coach of the Brazil national team, to a one-year prison term for tax fraud. The case centered on unpaid taxes related to image rights income during his first tenure as manager of Real Madrid.
Despite the prison sentence, Ancelotti will not serve jail time. Under Spanish law, sentences under two years for non-violent, first-time offenses are typically suspended.
The Verdict and Financial Penalty
The court found Ancelotti guilty of defrauding Spain's tax authority of €386,361.93 (approximately $452,000) in the 2014 fiscal year. In addition to the suspended prison sentence, he was ordered to pay a fine of the same amount. The court, however, acquitted him of a similar charge related to the 2015 tax year.
Background of the Allegations
The legal proceedings against Ancelotti began with his trial on April 2, 2025. Spanish prosecutors initially sought a much harsher penalty: a prison term of four years and nine months and a fine of €3.2 million.
The prosecution accused the veteran coach of using a "complex" network of shell companies to hide income earned from his image rights in 2014 and 2015, thereby failing to pay over €1 million in taxes. They argued that Ancelotti only declared the salary he received directly from Real Madrid in his tax returns, omitting the additional earnings.
During the trial, Ancelotti testified that he "never thought about committing fraud," stating he had trusted the financial arrangements proposed by his advisors and the club. His defense argued for acquittal, citing that he had followed professional advice and had since paid the owed amount in 2021.
A Familiar Story in Spanish Football
Ancelotti is the latest high-profile figure in Spanish football to face scrutiny from the country's tax authorities. In recent years, stars like Lionel Messi and Cristiano Ronaldo, as well as manager José Mourinho, have also been convicted of tax evasion, typically resulting in fines and suspended sentences.
The verdict closes a significant chapter for Ancelotti, who left Real Madrid after the 2024-25 season to take charge of the Brazilian national team.