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Former Real Madrid Coach Carlo Ancelotti sentenced to one-year suspended prison term, fined over $450,000 for tax fraud

Paul Joseph by Paul Joseph
July 11, 2025
in Sports
Reading Time: 2 mins read
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tax evasion in Spain, Real Madrid, Carlo Ancelotti, Brazil’s national team, tax fraud, Lionel Messi, Cristiano Ronaldo, Jose Mourinho,
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Carlo Ancelotti, one of football’s most decorated managers and current head coach of Brazil’s national team, has been sentenced to a one-year suspended prison term by a Madrid court after being found guilty of tax fraud during his time at Real Madrid. The court also imposed a hefty fine of €386,000 ($452,187), intensifying scrutiny on yet another global football icon facing legal troubles in Spain.

Ancelotti, who managed Real Madrid during the 2014 and 2015 seasons, was accused of defrauding the Spanish government of nearly €1 million by concealing income from image rights through offshore shell companies, including one registered in the Virgin Islands. Prosecutors initially sought a prison sentence of four years and nine months on two counts of tax fraud but ultimately accepted a plea deal resulting in a reduced sentence.

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Because Ancelotti no longer resides in Spain and has no prior criminal convictions, the one-year sentence will remain suspended. Under Spanish law, prison terms under two years are typically suspended for first-time offenders, especially when restitution or cooperation is demonstrated during trial proceedings.

The scandal stems from accusations that Ancelotti used entities with no real economic activity to obscure earnings related to his image rights while managing the La Liga giants. Prosecutors alleged that the tactic allowed him to avoid declaring substantial revenue to Spanish tax authorities during his tenure.

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This development places Ancelotti among a growing list of football figures prosecuted for tax evasion in Spain. High-profile players like Lionel Messi, Cristiano Ronaldo, and former Real Madrid manager Jose Mourinho have all faced similar legal battles, although none have served jail time due to suspended sentences and settlements.

Ancelotti’s press officer, Carlos Sanchez, told The Associated Press that the coach would not comment on the ruling for now. Meanwhile, the Brazilian Football Confederation (CBF) acknowledged the situation and said it is closely monitoring developments but has not issued an official stance.

Ancelotti, who recently turned 66, made headlines when he was appointed as Brazil’s head coach following a trophyless 2024–2025 season with Real Madrid. Despite this legal setback, his legacy as one of football’s most successful coaches remains intact. He is the only manager in history to have won the UEFA Champions League five times, three times with Real Madrid and twice with AC Milan and has captured domestic league titles in England, Spain, Germany, Italy, and France.

The ruling is a reminder of the continued vigilance of Spanish tax authorities toward top football personalities and the ongoing push for financial transparency in the global sports industry. Whether the verdict will have any lasting impact on Ancelotti’s future with the Brazilian national team remains to be seen, but for now, his legacy faces a blemish off the pitch.

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