The coach of Real Madrid, Carlo Ancelotti, is scheduled to appear in court on Wednesday to face charges of defrauding Spain’s tax office of over €1 million (£836,857) in unreported image rights earnings in 2014 and 2015.
The 65-year-old former Chelsea and Everton manager is accused by prosecutors of using shell corporations outside of Spain to create “opacity vis-a-vis the Spanish treasure, concealing the real beneficiary of the income from the exploitation of his image rights.” The prosecution is seeking a four-year and nine-month jail sentence.
They assert that the coach only reported his personal profits from the club and failed to include the money he received from the sale of his image rights, even though he was considered a Spanish resident for tax purposes.
According to the authorities, he failed to pay €1,062,079 in taxes on the sale of those rights, which came to €1.24 million in 2014 and €2.96 million the year after. The anticipated duration of the trial, which will take place in Madrid, is two days.
The most successful manager in the history of the Champions League, Ancelotti, has refuted the accusations and stated that he is eager to face the police. “Law and justice are things I have complete faith in,” he told reporters last Friday.
Ancelotti faces tax fraud trial in Spain
Last week, Ancelotti expressed his full confidence in the Spanish legal system to reporters, saying he was eager to testify in court.
The prosecutor claimed that Ancelotti’s debt and interest had been confiscated by Spain’s tax authorities prior to the trial. The trial is set to last three days in a Madrid courtroom. At any stage of the proceedings, including prior to the hearing, the parties may come to an out-of-court agreement.
Former player Ancelotti, who participated in the 1990 World Cup and earned 26 caps for Italy, returned to Real Madrid in 2021 for a second term as coach. Two times with AC Milan and three times with Real Madrid, he has won the Champions League five times as a coach.
