Carlo Ancelotti Sentenced for Tax Fraud in Spain

Carlo Ancelotti Sentenced for Tax Fraud in Spain

Carlo Ancelotti, the legendary football tactician currently managing the Brazil national team, has found himself at the center of legal trouble in Spain. A Madrid court has sentenced him to one year in prison for tax fraud linked to undeclared earnings from image rights during his first stint as Real Madrid manager in 2014.

Although the court handed down a prison term, Spanish law allows certain exceptions. For non-violent offenses where the sentence does not exceed two years and the individual holds a clean criminal record, the law typically does not enforce jail time. That’s the case with Ancelotti, who will likely avoid prison but must still face significant penalties.

The Sentence and Financial Penalties

The Madrid Provincial Court delivered its ruling on Wednesday. Judges found Ancelotti guilty of deliberately evading taxes on income generated through image rights in 2014. As a result, the court imposed a hefty fine exceeding €386,000. Ancelotti must pay this sum directly to Spain’s tax authorities.

However, the court dropped similar charges for the 2015 fiscal year. The prosecution failed to prove that Ancelotti resided in Spain during that year. The absence of sufficient evidence worked in the coach’s favor and helped him avoid further penalties.

Consequences Beyond the Fine

The ruling extends beyond financial penalties. For the next three years, Ancelotti will not qualify for any public aid, subsidies, tax benefits, or social security incentives in Spain. This restriction applies regardless of whether he chooses to live or work in the country during that time. While this may not immediately affect his career—given his move to Brazil—it tarnishes his legal and professional record in one of Europe’s major footballing nations.

Ancelotti’s Response: “I Followed Real Madrid’s Legal Advice”

During the court hearings in April, Ancelotti defended himself vigorously. He explained that he relied entirely on the legal guidance provided by Real Madrid and the club’s tax consultants. According to him, he did not attempt to deceive Spanish tax authorities but simply acted based on the professional advice he received.

Ancelotti also revealed that he settled his outstanding tax debts with the Spanish tax agency in December 2021.

The issue centers on Ancelotti’s image rights income in 2014. In professional football, image rights often represent a substantial part of a manager’s or player’s earnings. Managers frequently sign sponsorship deals, commercial endorsements, and media appearances—all falling under this category. Tax authorities across Europe have become increasingly strict in monitoring these income streams, especially when contracts attempt to shield these earnings through foreign companies or complex structures.

The court ruled that Ancelotti failed to declare this income properly. It viewed the act as intentional concealment. Although he cooperated with investigators and repaid the due amounts, the legal system still recognized it as tax fraud under Spanish law.

Career at Real Madrid and Move to Brazil

Carlo Ancelotti’s coaching résumé includes two memorable stints at Real Madrid.  He returned in June 2021 for another highly successful tenure, which ended in May 2025.

After his second spell at the Spanish capital club, Ancelotti accepted one of football’s most prestigious roles: head coach of the Brazil national team. The Brazilian Football Confederation selected him to lead the squad into the 2026 FIFA World Cup. The country’s football-loving public and the national federation have high hopes for Ancelotti, expecting him to help Brazil win a record-extending sixth World Cup title.

Legal Troubles Among Football’s Elite

Ancelotti’s legal troubles highlight a broader issue within the football world. Several high-profile figures have faced similar charges in Spain over the past decade. Lionel Messi, Cristiano Ronaldo, and José Mourinho also faced tax-related investigations and penalties. Spanish authorities have cracked down on income from image rights, especially when football professionals channel that money through offshore accounts or shell companies.

The legal system views these practices as attempts to avoid paying their fair share of taxes. Authorities now enforce stricter rules and have built a reputation for pursuing even the most iconic figures in global sports.

Impact on Reputation and Future

Despite the conviction, Ancelotti’s reputation within the football world remains strong. His supporters see him as a respected tactician with a clean image, and many believe the tax issue stems more from poor financial advice than from malicious intent. The fact that he settled the debts and cooperated with legal authorities reinforces the belief that he acted in good faith.

However, any conviction—especially in Europe—can pose challenges. It might complicate future employment opportunities within EU countries. Clubs and national federations may hesitate to hire individuals with legal records involving financial crimes. Even if the charges did not lead to actual jail time, the stigma can remain.

Brazil’s Federation Stands Behind Him

As of now, the Brazilian Football Confederation has not released a statement distancing itself from Ancelotti.

Ancelotti’s experience, calm demeanor, and tactical brilliance make him one of the most sought-after coaches in modern football. Brazil’s team includes a new generation of stars, and Ancelotti’s leadership could prove essential in guiding them to global glory.

Final Thoughts

Carlo Ancelotti’s sentence for tax fraud marks a significant moment in his illustrious career. While he won’t serve time in prison, the case serves as a reminder of how financial mismanagement—even when unintentional—can lead to serious consequences. The €386,000 fine, the three-year suspension from Spanish tax benefits, and the impact on his public image will remain part of his legacy.