Carlo Ancelotti Handed One-Year Prison Sentence In Tax Fraud Case – See Details

Brazil national team manager Carlo Ancelotti was handed a one-year prison sentence by a Spanish court in Madrid on Wednesday, 9 July 2025, for tax fraud related to undeclared image-rights income during his time as the Real Madrid manager in 2014. Along with the prison sentence, the 66-year-old Italian manager has been fined EUR 386,000.

However, thankfully for Ancelotti, who is currently the head coach of the Selecao, will have his prison sentence suspended, meaning that he will spend no time behind bars. Under Spanish law, first-time offenders convicted of non‑violent crimes with sentences under two years typically avoid jail time if they do not reoffend during that period.

Spanish prosecutors accused Ancelotti of concealing approximately EUR 1 million in income through shell companies, including one in the US Virgin Islands, to evade taxes. The verdict was significantly more lenient than what prosecutors had initially sought – five years in prison and EUR 3.2 million in fine.

This is the second time Ancelotti has faced legal trouble over tax-related matters, as similar charges against him were dismissed in 2015 due to a lack of evidence regarding his residency in Spain. He moved to London soon after being fired by Real Madrid.

Carlo Ancelotti Denies Wrongdoing In Tax Evasion Case

As per the Independent, the former Everton manager denied any wrongdoing during the tax evasion trial, maintaining his innocence, saying that he relied on Real Madrid’s and his accountant’s advice.

“I was only concerned with collecting six million net for three years, and I never realised anything was wrong, and I never received any communication that the Prosecutor’s Office was investigating me,” he said, as per the Independent.

“When Real Madrid proposed this (transfer of image rights) to me, I contacted my English advisor and never went into the matter because everything seemed correct to me. I didn’t think it could be fraud, although if I’m here, I believe things weren’t so correct.”

Interestingly, current Real Madrid manager Xabi Alonso also faced a case of tax fraud filed against him in Spain in 2019, but he was found ‘not guilty’ by the court.