Brazil national team manager Carlo Ancelotti has been handed a one-year prison sentence and fined €386,000 (\$375,000) by the Provincial Court of Madrid after being found guilty of tax fraud during his first spell as Real Madrid head coach in 2014, MySportDab Reports.
The 66-year-old Italian, one of the most decorated managers in football history, was convicted of failing to declare income earned from his image rights during the 2013-14 season, his debut campaign with the Spanish giants.
Prosecutors argued that Ancelotti reported only his salary on his tax returns and used shell companies to conceal his image-rights revenue, evading over €1 million in taxes.
Ancelotti, who denied any wrongdoing during his court appearance in April, claimed he was unaware that receiving part of his compensation through image rights would lead to tax issues. Despite his defense, the court sided with the Spanish Public Treasury.
While Ancelotti has been sentenced to a year in prison, he is unlikely to serve jail time due to Spanish law, which allows suspended sentences for non-violent first-time offenders if the term is under two years.
The court acquitted him of a similar offense for the 2015 tax year but imposed additional penalties that prevent him from receiving public aid or benefiting from tax or Social Security benefits for the next three years.
Ancelotti’s sentencing comes shortly after his departure from Real Madrid, where he won numerous trophies across two stints. He now leads Brazil into the 2026 World Cup cycle.
The case adds his name to a growing list of high-profile figures, including Cristiano Ronaldo and Diego Costa, who have faced tax fraud investigations in Spain in recent years.
