Carlo Ancelotti sentenced to one year in prison in Spain

Former Real Madrid coach and current Brazil national team manager Carlo Ancelotti was sentenced on Wednesday in Spain to one year in prison and a significant fine, following a conviction for tax fraud committed in 2014.

The case centered around undeclared income from image rights a recurring issue in Spanish football and has once again highlighted the complexities surrounding the tax obligations of high-earning foreign figures working in Spain’s La Liga.

The Spanish court found that Ancelotti had failed to properly declare a substantial portion of his earnings from image rights during his first tenure as Real Madrid manager, which ran from 2013 to 2015. While he declared his salary from the club, the prosecution argued that he created a network of shell companies and used foreign entities to conceal income related to commercial endorsements and image rights income that, under Spanish tax law, should have been taxed locally due to his residency status at the time.

Though prosecutors had initially accused him of defrauding the Spanish tax authorities of more than €1 million across 2014 and 2015 specifically €386,361 in 2014 and €675,718 in 2015 the court ruled that sufficient evidence existed only for the 2014 charge. He was thus acquitted of the 2015 charge, resulting in a reduced penalty.

In addition to the one-year prison sentence which is highly unlikely to be served due to Spain’s policy of suspending prison terms under two years for non-violent, first-time offenders Ancelotti was also ordered to pay a fine exceeding €386,000. Moreover, he has been barred from accessing public aid, subsidies, and any fiscal or social security incentives for a period of three years, adding further financial and reputational consequences.

During the trial, which took place in April, Ancelotti defended himself by stating that he never had the intention to deceive the authorities and had relied entirely on the legal and financial advice provided by Real Madrid and his accountants. According to his testimony, he was advised that image rights income negotiated through companies based outside Spain did not need to be declared locally a claim that the prosecution challenged as insufficiently diligent for someone in his financial position.

Ancelotti’s legal team argued for several mitigating circumstances, which the court took into partial consideration. These included the full repayment of the alleged outstanding tax debt completed by December 2021 the absence of intent to commit fraud, and procedural delays that prolonged the legal process. They also cited his cooperation with authorities throughout the investigation, his clean criminal record, and his efforts to clarify and settle the matter outside court before the trial began.

Despite the conviction, Ancelotti’s role as head coach of the Brazilian national team a position he is expected to formally take on ahead of the 2026 World Cup remains unaffected for now. The Brazilian Football Confederation (CBF) has yet to issue an official statement on the matter, although internal sources have indicated that they view the case as a private tax issue unrelated to his sporting duties.

The conviction adds Ancelotti’s name to a growing list of high-profile football figures who have faced legal trouble in Spain over tax matters. Lionel Messi, Cristiano Ronaldo, José Mourinho, and Neymar have all been investigated or convicted in the past decade under similar circumstances involving image rights and earnings routed through offshore structures. Spain’s tax authority has taken a strict stance in recent years, aggressively pursuing celebrities and athletes to close loopholes and ensure transparency.

Ancelotti, 66, remains one of the most respected and decorated managers in football history. With league titles in Italy, England, France, Germany, and Spain, and four UEFA Champions League titles to his name, his legacy on the pitch is unquestioned. However, this episode marks a stain on his otherwise immaculate professional reputation and serves as a cautionary tale for other international figures working in countries with complex tax regulations.

For now, Ancelotti will continue preparing for his new chapter with the Brazil national team, but the shadow of legal scrutiny may linger, especially if further financial reviews emerge from his time in European football.