Brazil national team coach Carlo Ancelotti has been sentenced to one year in prison by a Spanish court for tax fraud relating to his image rights revenues during his time as Real Madrid manager in 2014.
The 66-year-old Italian was also fined €386,361 but will not serve jail time, as Spanish law stipulates that sentences under two years for non-violent crimes rarely require defendants without previous convictions to serve prison terms.
The Madrid court announced the verdict on Wednesday, finding Ancelotti guilty of failing to pay tax on image rights income during his first stint managing Real Madrid between 2013 and 2015.
During the trial, Ancelotti told the court it was not his intention to defraud the treasury and that he "simply did as he was told by the club", according to reports.
Carlo Ancelotti has been handed a one-year prison sentence over tax fraud
Reuters
The court cleared him of similar charges for 2015, as it could not prove he had remained in Spain long enough to incur tax liabilities.
He departed for London after Real Madrid dismissed him in May 2015.
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The conviction relates specifically to concealing income from his image rights whilst employed by the Spanish giants during his first spell at the Santiago Bernabéu.
Ancelotti was first indicted on suspicion of alleged tax irregularities whilst managing Everton in 2020.
State prosecutors claimed the former AC Milan and Chelsea boss defrauded Spain of €1million between 2014 and 2015 during his initial Madrid tenure.
The offence carried a potential sentence of up to four years and nine months in prison.
In March 2024, following Real Madrid's Champions League draw with RB Leipzig, Ancelotti publicly addressed the allegations, stating: "It's an old story that started eight years ago.
"The Prosecutor's Office thinks that I was a resident, and I was not. I have already paid the fine. I'm innocent."
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Carlo Ancelotti recently took charge of the Brazil squad ahead of next year's World Cup
Reuters
The former Bayern Munich manager recently took charge of Brazil's national team and is expected to lead them at next year's World Cup, having left Real Madrid earlier this year after his second spell at the club.
Ancelotti becomes the latest in a series of football celebrities to be investigated and convicted by Spanish tax authorities for alleged tax fraud.
Earlier this year, he revealed he was "not worried" about his fate and had "total confidence in justice" when discussing the impending trial.
The Italian has yet to release a statement regarding Wednesday's verdict, which comes just two games into his tenure with the Brazilian national team.
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