The charges stem from Ancelotti’s first stint with Real Madrid in 2014, during which he allegedly failed to declare more than €386,000 in income derived from image rights. Prosecutors had originally pushed for a prison sentence of nearly five years, but the court ultimately handed down a reduced sentence of one year, citing mitigating factors.
In addition to the prison term, Ancelotti was fined €386,361 and banned from receiving public subsidies or tax-related benefits for a three-year period. However, under Spanish law, first-time, non-violent offenders receiving sentences of less than two years typically avoid serving actual jail time, making it unlikely that the 66-year-old coach will be incarcerated.
The court concluded that Ancelotti had used a network of offshore entities to conceal portions of his income, a method seen by authorities as an attempt to evade taxes. Despite the conviction, Ancelotti has denied any intent to defraud, arguing that his financial affairs were managed by advisors associated with Real Madrid and that such arrangements were common practice in professional football at the time.
While Ancelotti was found guilty of tax fraud for the 2014 fiscal year, the court dismissed similar accusations relating to 2015 due to insufficient evidence. The court also acknowledged that Ancelotti repaid the full amount owed by late 2021, a factor that contributed to the reduced sentence.
This case is part of a wider campaign by Spanish tax authorities aimed at cracking down on tax evasion within the football industry, particularly among high-profile figures associated with La Liga.