On Wednesday, a Spanish court imposed a one-year sentence on Brazilian manager Carlo Ancelotti for tax fraud dating back to 2014 during his tenure with Real Madrid. Additionally, he received a fine of €386,000 (approximately $452,187).
Prosecutors in Spain accused Ancelotti of evading taxes on earnings exceeding one million euros (about $1 million) between 2014 and 2015. They had sought a much steeper prison term of up to four years and nine months for two instances of tax evasion.
In March 2024, authorities alleged that Ancelotti used a shell company based in the Virgin Islands to conceal his true income, claiming the company had no "actual economic activities." A spokesperson for Ancelotti, Carlos Sanchez, informed the Associated Press that the coach would refrain from making any comments at this time.
The Brazilian Football Federation stated it is monitoring the situation closely. Ancelotti joins a long list of high-profile figures in soccer who have faced scrutiny from Spanish tax authorities over unpaid taxes, a group that includes Lionel Messi, Cristiano Ronaldo, and another former Madrid coach, Jose Mourinho. It’s notable that in Spain, judges can suspend sentences of under two years for first-time offenders.
Ancelotti, who turned 67 recently, is celebrated as one of the game’s most accomplished coaches, being the only manager to have won the Champions League five times—three with Madrid and twice with AC Milan. He has also secured domestic league titles in England, Spain, Italy, Germany, and France.
Having concluded his second stint with Real Madrid, Ancelotti is now at the helm of the Brazilian national team.
This news is significant for soccer fans as it highlights ongoing issues within the sport regarding financial accountability and tax compliance among its elite figures. Ancelotti’s case underscores the continuing pressure on footballers and coaches to adhere to fiscal laws, which could set precedents affecting future generations in the sport.
