- Ancelotti received a 1-year suspended sentence and €386k fine for 2014 tax fraud.
- Cleared of 2015 charges due to lack of tax residency proof.
- Spanish law spares first-time offenders from jail for sub-2-year sentences.
- Brazil’s federation monitoring but no immediate impact on coaching role.
- Case adds to Spain’s history of high-profile football tax investigations.
In a significant ruling that has surprised many in the football community, Brazil’s national team coach and former Real Madrid manager, Carlo Ancelotti, has been handed a one-year prison sentence for tax fraud involving undisclosed earnings from image rights dating back to his first time with the Spanish club in 2014.
Fortunately for the 66-year-old Italian coach—widely regarded as one of the most accomplished figures in football—he won’t actually serve time behind bars, thanks to Spain’s lenient laws for first-time, non-violent offenders.
The Charges and Court Ruling
A court in Madrid found Ancelotti guilty of not paying €386,361 (around $452,000) in taxes on revenue from image rights during his period at Real Madrid from 2013 to 2015. Initially, prosecutors sought a significantly harsher sentence—four years and nine months in prison, along with a fine of €3.2 million. But the court ultimately dismissed the charges for 2015, citing a lack of evidence regarding his tax residency after his dismissal in May 2015 and subsequent relocation to London.
Ancelotti’s defense maintained that he had relied on financial advisors and the way Real Madrid structured his €6 million net salary, asserting he had no knowledge of any fraudulent practices.
“I never even considered committing fraud,”
he said in testimony back in April.
🚨 Carlo Ancelotti has been sentenced to one-year in jail for tax fraud.
The Brazil coach was accused of concealing income related to his image rights.
(Source: @EFEnoticias) pic.twitter.com/bh6exzeGvb
— Transfer News Live (@DeadlineDayLive) July 9, 2025
“I negotiated a net salary because taxes aren’t my area of expertise. I trusted the club and my advisors.”
Why Ancelotti Won’t Serve Jail Time
According to Spanish law, sentences under two years for non-violent offenses are typically suspended for first-time offenders. This has allowed other prominent players, such as Lionel Messi, who received a 21-month suspended sentence in 2017, and Cristiano Ronaldo, who was hit with an €18.8 million fine in 2019, to avoid jail.
Ancelotti’s press officer, Carlos Sánchez, announced that the coach wouldn’t be making any statements regarding the verdict, while Brazil’s football federation (CBF) mentioned it is “monitoring the situation.”
A Pattern of Tax Cases in Spanish Football
Ancelotti isn’t alone; he’s one of many football figures who have faced scrutiny from Spain’s tax authorities, including:
- José Mourinho (€2.2 million fine, 1-year suspended sentence in 2019)
- Diego Costa (€543,208 fine for tax evasion in 2014)
- Xabi Alonso (acquitted in 2023 after rejecting a settlement)
Legal experts suggest that while Spain has been aggressive in cracking down on high-earning athletes regarding their taxes, many choose to settle. Ancelotti’s choice to fight the charges in court instead of negotiating is what made his case particularly noteworthy.
What’s Next for Ancelotti?
For the time being, Ancelotti’s position as Brazil’s head coach isn’t in jeopardy. His attention will now turn to preparing the team for the 2026 World Cup. Meanwhile, the €386,361 fine and the €1.5 million tax debt he repaid in 2021 have settled the financial aspects of the case.
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Last Updated on July 9, 2025 by 247 News Around The World
