Madrid, Spain – Real Madrid’s esteemed head coach, Carlo Ancelotti, appeared in a Spanish court on Wednesday, stating that he believed his financial dealings were above board. The Italian manager is facing charges of evading approximately one million euros ($1.08 million USD) in taxes related to his image rights income during his first stint with the club.
“For me, everything was in order,” Ancelotti told the court. “I never thought about committing fraud.”
Ancelotti, taking the stand on the first day of the trial, explained that upon his arrival at the Spanish giants, he negotiated a net salary of six million euros. He entrusted the club and his British financial advisor with the structuring of his compensation package.
“I thought it was quite normal because at that time all the players and the previous coach had [done the same],” Ancelotti added during his roughly 40-minute testimony.
The veteran coach’s legal troubles place him among a string of high-profile figures in the soccer world who have come under scrutiny from Spanish tax authorities regarding alleged financial irregularities.
While some prominent players, including Portuguese superstar Cristiano Ronaldo and Spanish international Diego Costa, opted to settle their cases out of court by paying substantial fines, others, like Bayer Leverkusen manager Xabi Alonso, chose to contest the allegations in court.
Prosecutors are seeking a prison sentence of four years and nine months for Ancelotti, alongside a hefty fine of 3.2 million euros (nearly $3.5 million USD) for two counts of tax evasion dating back to 2014 and 2015.
The prosecution contends that Ancelotti only declared the salary he received directly from Real Madrid, failing to report income derived from his image rights in his tax filings.
Ancelotti argued that image rights hold significantly less financial weight for coaches compared to players, stating, “For coaches, [image rights] don’t mean the same as they do for players because they don’t sell shirts.”
Prior to the hearing, the prosecution revealed that Spanish tax authorities had already seized the contested amount, along with accrued interest, from Ancelotti.
It remains possible for the involved parties to reach a settlement agreement outside of court at any stage of the proceedings. A verdict in the case is anticipated within the coming weeks.
Ancelotti’s wife, Mariann, his son, Davide, and his stepdaughter, Chloe, also provided testimony on Wednesday.
Ancelotti, who enjoyed a successful playing career with 26 caps for Italy, including participation in the 1990 World Cup, rejoined Real Madrid in 2021 for his second tenure as the club’s manager. He boasts an impressive record of five Champions League titles as a coach, having lifted the trophy twice with AC Milan and three times with Real Madrid.
