Carlo Ancelotti, former Real Madrid head coach and current manager of Brazil’s national team, was handed a one-year prison sentence and fined €386,000 by a Madrid court on the night of July 9 after being found guilty of tax evasion.
According to Spanish law, sentences under two years for non-violent misdemeanors, especially for first-time offenders, are typically suspended. Ancelotti is expected to pay the fine and avoid actual jail time.
The conviction stems from allegations that Ancelotti deliberately provided false income declarations to the Spanish tax authorities during his tenure at Real Madrid from 2014 to 2015, aiming to evade over €1 million in taxes. Although he admitted to an error in his 2014 declaration, Ancelotti attributed the mistake to his accounting team and maintained that he was not a Spanish tax resident in 2015, falling short of the 183-day threshold required for tax liability.
Prosecutors had initially sought a much harsher punishment: 4 years and 9 months in prison, along with a €3.2 million fine, arguing that Ancelotti failed to report substantial income received from image rights during his time at Real.
Ancelotti’s legal team has declined to comment publicly. Meanwhile, the Brazilian Football Confederation has stated that it is monitoring the situation closely.
Ancelotti joins a list of high-profile figures in Spanish football who have faced legal consequences over tax issues. Notably, Lionel Messi and his father received suspended sentences in 2016 for tax fraud involving €4.1 million. In 2019, Cristiano Ronaldo paid nearly €19 million in fines and received a suspended 23-month prison term. Coaches such as José Mourinho and players like Diego Costa have also encountered legal issues related to tax evasion during their time in La Liga.
After departing Real Madrid in May, Ancelotti had recently taken charge of the Brazil national team, underlining that the legal fallout may follow him even as he embarks on a new managerial chapter.