Real Madrid manager Carlo Ancelotti denies fraud in tax evasion trial

Real Madrid manager Carlo Ancelotti testified in court in Spain on Wednesday, denying any intent to commit fraud to tax evasion charges.

The former Chelsea and Everton boss is accused of failing to pay €1 million (£830,000) in taxes on his salary during his first spell at Real Madrid from 2013 to 2015.

Ancelotti, who began his second stint at Real Madrid in 2021, faces prosecutors seeking a prison term of four years and nine months, along with a fine of €3.2 million (£2.7 million). The charges allege that Ancelotti only paid tax on his Real salary while omitting income from image rights in his tax returns.

“For me, everything was in order,” Ancelotti stated in his testimony before the Provincial Court of Madrid. He explained that he was offered a net salary of €6 million (£5.1 million) by Real Madrid and left the financial structure of his contract to his advisors.

“I thought it was quite normal because at that time all the players and the previous coach had done the same,” Ancelotti added. He also noted that for coaches, image rights are not as significant as they are for players, given that coaches do not sell merchandise like jerseys.

Ancelotti’s case is part of a broader trend in Spanish football, where several high-profile figures have faced tax evasion charges in recent years.

Barcelona forward Lionel Messi was fined €252,000 in 2017 after being given a 21-month prison sentence, which was later converted to a fine. In 2019, Real Madrid striker Cristiano Ronaldo accepted an €18.8 million fine following an out-of-court settlement.

José Mourinho, during his time as Real Madrid manager in 2011-12, was also fined €2.2 million for similar charges.