A Madrid court sentenced Brazil’s national football coach Carlo Ancelotti to one year in jail on Wednesday for tax fraud. The ruling also orders him to pay a €386,000 fine. The charges relate to his time managing Real Madrid back in 2014. Spanish tax authorities proved Ancelotti hid earnings from his image rights – money companies pay to use his name and face – while only declaring his Real Madrid salary.
Prosecutors had pushed for a much tougher punishment: nearly five years in prison and a €3.2 million fine. However, Spanish law means Ancelotti won’t actually go to jail as it’s his first offense, and the sentence is under two years.
The court found Ancelotti set up a complex system to avoid Spanish taxes on his image rights income. Prosecutors said he used shell companies outside Spain, particularly in the Virgin Islands, to channel millions earned from licensing his image for products and sponsorships during his first stint at Real Madrid.
Ancelotti avoids prison under Spanish law, joins list of football stars targeted
He allegedly reported only his basic salary to Spanish tax authorities in 2014 and 2015, deliberately omitting the significant revenue generated by his global fame and image. This practice, while common in football, violated Spanish tax laws requiring residents to declare worldwide income. Ancelotti’s lawyers had argued his tax affairs were managed correctly elsewhere.
Carlo Ancelotti, tax fraud, Real Madrid, image rights, Spanish tax authorities, Spanish court, suspended sentence, tax evasion, Brazil coach, football taxes, La Liga
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