Real Madrid manager Carlo Ancelotti took the stand in a Madrid courtroom, denying allegations of tax evasion and stating that he never thought about committing fraud.
The charges against Carlo Ancelotti stem from accusations of failing to pay approximately 1 million euros (£830,000) in taxes on his salary from his first tenure at Real Madrid, which lasted from 2013 to 2015.
Ancelotti, who returned to Real Madrid for a second time in 2021, is now facing serious legal repercussions, with prosecutors pursuing a prison sentence of four years and nine months, along with a hefty fine of 3.2 million euros (£2.7 million).
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The crux of the allegations revolves around Ancelotti’s omission of income from image rights on his tax returns, despite reportedly paying taxes solely on his Real Madrid salary.
During his testimony at the Provincial Court of Madrid, Ancelotti explained that he was presented with a net annual salary of 6 million euros (£5.1 million) from the club.
He added that he entrusted the financial structuring of this salary to his financial advisors, believing that everything was in order and compliant with the law.
“For me, everything was in order,” he stated, emphasizing his conviction about his financial dealings.
Ancelotti defended his position by highlighting that during his tenure, it was common practice among players and coaches to manage their tax obligations similarly.
“I thought it was quite normal because, at that time, all the players and the previous coach had done the same,” he remarked, suggesting that the expectations around image rights were different for coaches compared to players since coaches typically do not benefit from merchandise sales like jerseys.
This case adds to a growing list of high-profile tax evasion investigations in the world of Spanish football. Notably, in 2017, Barcelona forward Lionel Messi was fined 252,000 euros after avoiding a 21-month prison sentence linked to tax evasion.
Additionally, in 2019, Real Madrid’s Cristiano Ronaldo accepted an out-of-court settlement that involved paying 18.8 million euros in fines for similar tax offenses.
Furthermore, former Real Madrid manager José Mourinho was also fined 2.2 million euros for tax issues during his time at the club from 2011 to 2012.
