A Madrid court on Wednesday sentenced Brazil's current national football coach, Carlo Ancelotti, to one year in prison and fined him €386,000 ($452,000) for tax fraud linked to his time managing Real Madrid in 2014. Spanish prosecutors had accused the 66-year-old of failing to declare income from image rights and using shell companies to conceal earnings.
Although the court found Ancelotti guilty of tax fraud for the year 2014, it dismissed a similar charge for 2015, stating there was insufficient evidence to prove that Ancelotti had resided in Spain long enough that year to incur tax liability. He left Madrid for London after being sacked by Real Madrid in May 2015.
Under Spanish law, prison sentences under two years for nonviolent offences typically do not require jail time if the individual has no prior convictions. Prosecutors had initially sought a sentence of up to four years and nine months for Ancelotti on two counts of tax fraud.
In March 2024, authorities alleged Ancelotti used offshore companies, including one in the Virgin Islands, without “any real (economic) activity,” to shield around €1 million in earnings. A staff member from Ancelotti’s team, speaking on condition of anonymity, said his legal team was satisfied with the court's final ruling.
Brazil yet to comment
The Brazilian Football Confederation has not yet commented on the verdict.
Ancelotti joins a list of high-profile figures in Spanish football, such as Cristiano Ronaldo and Diego Costa, who have faced similar tax investigations. Most of these cases were resolved through settlements. However, Xabi Alonso was acquitted in 2023 after successfully defending his case in court.
Ancelotti, who is considered one of the most decorated managers in football history, stepped down from his second stint at Real Madrid in May 2025 to take over as head coach of Brazil’s national team. During his second stint, he helped the Los Blancos win two more Champions League titles and two La Ligas.
