Real Madrid’s Ancelotti on Trial, Denies Tax Evasion Claims

Real Madrid coach Carlo Ancelotti appeared in court on Tuesday to face allegations of tax fraud, denying any intentional wrongdoing in his tax declarations.

Prosecutors accuse Ancelotti of failing to pay over one million euros ($1.1 million) in taxes from undeclared income earned through image rights in 2014 and 2015.

During his first spell at Real Madrid, Ancelotti allegedly received income from image rights, which he did not report in his tax returns. Prosecutors claim that he set up a “confusing” and “complex” system of shell companies to conceal these extra earnings.

However, Ancelotti testified that the payment system was proposed by Real Madrid, and that “all the players do it” as did another former coach, Jose Mourinho.

“When the club suggests it to me, I put Real Madrid in touch with my advisor. I didn’t deal with it because I had never been paid that way,” he stated.

Ancelotti maintained that he had never intentionally commited fraud, saying “I never realised that something wasn’t right,” he added, saying he “never considered committing fraud”.

Ancelotti arrived at the court with his wife Mariann Barrena and his son Davide, who serves as assistant manager at Real Madrid.

The trial, which is expected to last two days, may conclude with an out-of-court agreement. Similar cases involving footballers have typically resulted in suspended sentences, often through out-of-court settlements.

Ancelotti’s testimony highlighted the widespread practice of using shell companies to manage image rights income among football players and coaches. “At that time, all the players and coaches were doing it that way, it seemed like the right thing to do,” he said.