Real Madrid boss Carlo Ancelotti testifies in Spanish tax trial over image rights

Real Madrid coach Carlo Ancelotti appeared in a Spanish court on Wednesday, where he testified in a trial regarding allegations that he failed to pay €1million in taxes related to his image rights revenue.

Ancelotti is the latest high-profile football figure to face scrutiny from the Spanish tax authorities for alleged tax fraud.

Several cases involving prominent footballers, including Portugal’s Cristiano Ronaldo and Spain’s Diego Costa, have been settled out of court, often resulting in hefty fines.

“For me, everything was in order,” Ancelotti said. “I never thought about committing fraud.”

“I thought it was quite normal because at that time all the players and the previous coach had [done the same],” he added.

In contrast, in 2023, the Spanish Supreme Court upheld the acquittal of Bayer Leverkusen coach Xabi Alonso, who chose not to settle and instead defended his innocence.

In Ancelotti’s case, the prosecutor is seeking a four-year and nine-month prison sentence, as well as a €3.2million fine for two counts of tax evasion in 2014 and 2015.

The prosecution argues that Ancelotti only declared his salary from Real Madrid in his tax returns, failing to report income earned from his image rights.

Last week, Ancelotti expressed full confidence in the Spanish judicial system and stated that he was looking forward to testifying in court.

Before the trial, the prosecutor confirmed that Spain’s tax authority had seized the debt plus interest from Ancelotti.

The trial is set to take place over three days in a Madrid court. However, the parties involved could potentially reach an out-of-court settlement at any stage during the proceedings.

Ancelotti, who earned 26 caps for Italy and played in the 1990 World Cup, returned to Madrid as head coach in 2021 for a second stint.

As a coach, he has won the UEFA Champions League five times – twice with AC Milan and three times with Real Madrid.