Ancelotti gets jail term for tax evasion but is likely not going to prison

A Spanish court has sentenced former Real Madrid manager Carlo Ancelotti to a one-year suspended prison term for tax fraud related to income from image rights during his initial tenure at the club.

The 65-year-old, now head coach of Brazil, was found guilty of failing to declare over €1 million in earnings from 2014. Prosecutors had accused Ancelotti of using a network of shell companies to conceal portions of his income, particularly those derived from commercial deals linked to his image rights. They had sought a sentence of nearly five years.

Ancelotti denied any deliberate wrongdoing during his high-profile trial in April, stating he was unaware that structuring part of his salary through image rights contracts could be deemed a method of tax avoidance.

Despite his conviction, Ancelotti will not serve time behind bars, as Spanish law typically allows first-time offenders with sentences under two years to avoid prison. The court also imposed a fine of €386,361 (approximately $453,000).

In its ruling, the Madrid court noted that Ancelotti had demonstrated a “clear intent to evade tax obligations” through “artificial financial arrangements” and entities based in tax havens, describing the conduct as “blatantly fraudulent.”

However, the court dismissed similar charges related to the 2015 tax year, citing insufficient evidence to confirm his residency status in Spain during that period.

Ancelotti joins a growing list of football figures prosecuted under Spain’s intensified crackdown on tax evasion in recent years. Notable examples include Jose Mourinho, who received a suspended sentence in 2019, as well as Lionel Messi and Cristiano Ronaldo, who were both convicted of tax-related offenses but avoided prison as first-time offenders.

A highly decorated coach and former Italian international, Ancelotti has won a record five UEFA Champions League titles as a manager. He departed Real Madrid at the end of last season after a disappointing campaign and officially took over as Brazil’s national team boss.