Ancelotti Denies Fraud Allegations During Court Appearance

Carlo Ancelotti, manager of Real Madrid, stood in court defending himself against accusations of tax evasion, asserting he never intended to commit fraud. He faces potential prison time as authorities challenge the legitimacy of his reported earnings.

Real Madrid's esteemed manager, Carlo Ancelotti, has recently testified in court over serious tax evasion allegations. Accused of failing to pay approximately 1 million euros (£830,000) in taxes related to his salary during his previous tenure from 2013 to 2015, the Italian football icon firmly stated, "I never thought about committing fraud."

Ancelotti, who returned to lead Real Madrid in 2021 after a previous successful stint, faces harsh penalties, including a proposed prison sentence of four years and nine months, coupled with a fine of 3.2 million euros (£2.7 million). The legal case revolves around claims that he reported only his salary from Real Madrid while neglecting to include significant income derived from image rights.

"Everything was in order," Ancelotti insisted as he presented his case to the Provincial Court of Madrid. He explained that he accepted a net salary offer of 6 million euros (£5.1 million) from Real Madrid but deferred any financial structuring decisions to his advisors, believing the arrangements were commonplace in the football industry.

Ancelotti commented further, “I thought it was quite normal because at that time, all the players and the previous coach had done the same.” He added that the implication of image rights is not equivalently significant for coaches compared to players, who often have distinct revenue streams like merchandise sales.

The realm of Spanish football has seen multiple high-profile individuals face similar tax evasion charges in recent history. Notable cases include Barcelona player Lionel Messi, fined 252,000 euros in 2017 following a 21-month prison sentence, and Cristano Ronaldo, who agreed to pay an 18.8-million-euro fine to resolve his own tax issues. Moreover, ex-coach Jose Mourinho faced a penalty of 2.2 million euros in relation to tax violations during his time at Real Madrid.

As the court proceedings continue, the scrutiny placed on Ancelotti reflects a broader concern within the financial conduct of football executives and players alike.