Carlo Ancelotti denies tax evasion charges in Spanish court

Real Madrid coach faces trial over undeclared income from image rights.

Carlo Ancelotti attends his trial at the High Court of Justice of Madrid on April 2, 2025, facing accusations of tax evasion amounting to 1 million euros, the latest in a series of cases involving sports figures in Spain. Photo by Burak Akbulut/Anadolu

By Anna Fadiah and Hayu Andini

Real Madrid coach Carlo Ancelotti has denied allegations of tax evasion on the first day of his trial in Spain, insisting that he was unaware of any wrongdoing. The Italian manager faces accusations of failing to report over one million euros in image rights income to the Spanish tax authorities between 2014 and 2015, during his first tenure at Real Madrid. Prosecutors are seeking a prison sentence of four years and nine months for the veteran coach.

Ancelotti defends himself in court

Speaking before the High Court in Madrid, Ancelotti maintained his innocence, stating that he never intentionally avoided paying taxes. "I never realized that something was not going right until the public prosecutor's office investigated my finances in 2018. At that time, all the players and coaches did things like that," he said, according to AFP.

Ancelotti explained that Real Madrid had recommended a legal framework for managing his earnings. "When the club suggested it to me, I put Real Madrid in touch with my advisor. I never took care of it because I was never paid like that," he added.

Allegations of concealed income

Spanish prosecutors allege that Ancelotti deliberately hid income earned from image rights through a network of shell companies. According to the charges, he only reported his salary from Real Madrid but failed to declare additional earnings linked to commercial deals and real estate investments.

Authorities claim that a law firm set up an arrangement that allowed Ancelotti to receive 15 percent of his annual six-million-euro salary as income from image rights, significantly reducing his tax obligations. However, the Italian coach insists that he was unaware of the financial implications of this structure. "I didn't know it meant I would pay little tax," he told the court.

Family members involved in proceedings

The trial has also drawn in members of Ancelotti’s family. His son, Davide Ancelotti, who serves as Real Madrid’s assistant manager, was present in court, while his wife, Mariann Barrena, also attended the hearing. Meanwhile, his stepdaughter, Chloe McClay, provided testimony via video link from Los Angeles.

Possible settlement on the horizon

The trial is set to continue on Thursday, with the possibility of an out-of-court settlement still on the table. In Spain, high-profile tax cases involving football figures have often ended with financial agreements rather than lengthy prison sentences.

Ancelotti's case follows a series of tax evasion scandals in Spanish football. In recent years, several prominent figures, including Lionel Messi, Cristiano Ronaldo, and Jose Mourinho, have been convicted of tax fraud. In most instances, the individuals avoided jail time by reaching settlements and agreeing to suspended sentences.

Spain has ramped up efforts to crack down on financial irregularities within football, targeting clubs, players, and managers who fail to meet their tax obligations. The outcome of Ancelotti’s trial will likely set another precedent in the ongoing fight against tax evasion in the sport.