In the often-dramatic world of football, legal matters can sometimes eclipse on-field action. The latest figure to find himself entangled with tax authorities in Spain is none other than the revered Italian manager, Carlo Ancelotti, currently at the helm of the Brazilian national team and fondly remembered for his decorated spells at Real Madrid.
A Spanish court has handed down a verdict, sentencing Ancelotti to one year in prison and imposing a fine of €386,361. This ruling pertains to his failure to declare income from image rights during the 2014 financial year, a period coinciding with his first tenure managing the giants of Real Madrid. The case was heard in a Madrid criminal court.
However, before imagining the seasoned coach trading the dugout for a prison cell, it`s crucial to understand the nuances of the Spanish legal system. Sentences under two years for non-violent, first-time offenders are typically suspended, meaning Ancelotti is highly unlikely to serve any actual time behind bars. A slight irony, perhaps, for a punishment officially labelled a “prison sentence.”
The charges specifically focused on the 2014 period. The subsequent year, 2015, was not included in this case as the court could not definitively prove Ancelotti`s tax residency in Spain for a sufficient duration, following his departure from Real Madrid for London. During the court proceedings held earlier this month, Ancelotti`s defense contended that the responsibility for correct tax withholdings lay with the club, Real Madrid, and asserted that he harboured no intent to defraud the system. The court also acknowledged that the tax debt had since been settled.
Interestingly, the final ruling represents a significant reduction from the initial demands of the Spanish Prosecutor`s office, which had sought a prison term of four years and nine months and a hefty fine of €3.2 million. While Ancelotti returned to manage Real Madrid again from 2021, his financial activities during this second spell were not under investigation in this particular case.
This case adds another chapter to the recurring narrative of tax scrutiny faced by prominent figures navigating the complex financial landscape of Spanish football, a list that has famously included global superstars like Cristiano Ronaldo and Lionel Messi in the past. For Ancelotti, a manager celebrated for his tactical acumen and calm demeanour, this legal outcome serves as a formal reminder of the strict fiscal obligations, even as he continues to achieve remarkable success in his coaching career, including multiple Champions League titles with Real Madrid.
Dominic Ashworth