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Carlo Ancelotti, one of football’s most decorated managers and current head coach of Brazil, has been sentenced to one year in prison by a Spanish court after being found guilty of tax fraud.
The ruling, handed down by the Provincial Court in Madrid, relates to Ancelotti’s failure to declare over €1 million (£833,000) in income from his image rights during his first stint as Real Madrid manager between 2014 and 2015.
The 65-year-old Italian, who recently signed on to lead the Brazilian national team, appeared before the court in April to face accusations that he deliberately misled Spanish tax authorities. Prosecutors argued that Ancelotti had transferred his image rights to companies outside of Spain and did not declare the income properly, thereby evading a significant amount of tax.
When questioned about the charges, Ancelotti denied any deliberate wrongdoing. He explained to the court that he relied on professional advice from his English accountant at the time and believed the arrangement with Real Madrid and his advisors was lawful.
“I was only concerned with collecting six million net for three years, and I never realised anything was wrong. I never received any communication that the Prosecutor's Office was investigating me,” Ancelotti said during his testimony.
“When Real Madrid proposed this to me, referring to the transfer of image rights, I contacted my English advisor and never went into the matter because everything seemed correct to me. I didn’t think it could be fraud, although if I’m here, I believe things weren’t so correct.”
Under Spanish law, prison sentences of two years or less for non-violent crimes are typically suspended for first-time offenders, meaning Ancelotti is unlikely to serve actual jail time. However, the conviction remains on his record, and he may be required to pay fines and settle outstanding tax debts.
The news has caused shockwaves across the football world, particularly in Brazil, where Ancelotti is preparing to take over the national team ahead of the 2026 World Cup. Fans and pundits have questioned whether the ruling will have any impact on his ability to fulfil his duties with the Seleção.
So far, neither Ancelotti nor the Brazilian Football Confederation has issued a statement on the matter following the verdict. Real Madrid, where Ancelotti is still in charge of the first team until his Brazil role begins, has also declined to comment.
Ancelotti is widely regarded as one of football’s greatest managers, having won league titles in Italy, England, France, Germany and Spain, as well as four UEFA Champions League titles. This legal setback, however, casts a shadow over his otherwise stellar reputation.
For now, his focus is likely to remain on finishing his current season with Real Madrid before turning his full attention to the Brazilian national team, but the court’s ruling will linger as an unwelcome distraction for one of the game’s most respected figures.