Carlo Ancelotti has been sentenced to one year in prison and fined €386,000 for tax fraud relating to his time at Real Madrid in 2014.
A Spanish court found that Ancelotti failed to declare more than €1 million in income from image rights, which he allegedly hid through companies based in the UK and the British Virgin Islands.
Despite the severity of the sentence, the 65-year-old coach will not serve time in prison. Spanish law allows suspended sentences for non-violent first-time offenders whose jail term is less than two years.
Ancelotti, who now manages Brazil’s national team, denied any intention to commit fraud.
He claimed that he relied on financial advisers and believed his tax filings were in order.
The court, however, concluded that he was the real beneficiary of the image rights income and intentionally concealed it to avoid paying taxes.
As part of the ruling, Ancelotti has also been barred from receiving public subsidies or tax benefits for three years.
This case places Ancelotti among several football stars who have clashed with Spanish tax authorities in recent years, including Lionel Messi, Cristiano Ronaldo, José Mourinho, and Diego Costa.
Although he won’t go to prison, the conviction could tarnish his otherwise stellar reputation in the world of football.
