Real Madrid Coach Ancelotti Accused Of Tax Fraud

Real Madrid's head coach Carlo Ancelotti walks on the pitch at the end of the Spanish La Liga soccer match between Rayo Vallecano and Real Madrid at the Vallecas stadium in Madrid, Spain, Sunda

Spanish state prosecutors have leveled accusations of tax fraud against Real Madrid coach Carlo Ancelotti, alleging that he utilized shell companies to conceal portions of his income during his initial tenure at the club a decade ago. The prosecutors claim that Ancelotti is facing charges of two counts of tax fraud, which could result in a sentence of four years and nine months in prison. It is alleged that the Italian coach failed to declare his income from image rights, defrauding 1 million euros in 2014 and 2015 by only reporting the income received from Real Madrid.

The prosecutors assert that Ancelotti established a complex network of shell companies to obscure his additional earnings. These companies, purportedly lacking genuine activity, were based outside Spain to evade taxes on substantial sums earned both within and outside the country. Ancelotti, aged 64, previously coached Real Madrid from 2013 to 2015 before returning to the club in 2021.

Carlo Ancelotti is renowned as one of soccer's most successful coaches, having secured four Champions League titles (two with Real Madrid and two with AC Milan) and domestic league championships in England, Spain, Italy, Germany, and France. He joins a list of prominent soccer figures targeted by Spanish authorities for tax irregularities, although none have been incarcerated thus far.

Former Real Madrid coach Jose Mourinho received a one-year suspended sentence in 2019 after admitting to tax fraud. Superstars Lionel Messi and Cristiano Ronaldo have also faced tax fraud charges in Spain, accused of employing offshore shell companies to conceal income from image rights.

Prosecutors claim he defrauded 1 million euros in 2014 and 2015.

Ancelotti accused of tax fraud for unreported image rights income.

Allegations include use of shell companies to hide earnings.

Ronaldo agreed to pay a substantial fine in 2019 and received a suspended two-year sentence. Messi and his father were found guilty of defrauding tax authorities but avoided imprisonment by paying significant fines. In Spain, first-time offenders can have sentences of less than two years suspended by a judge.

Carlo Ancelotti's case adds to the ongoing scrutiny of financial practices within the soccer world, highlighting the importance of transparency and compliance with tax regulations.

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