Carlo Ancelotti faces jail term over tax fraud charges

Brazil head coach Carlo Ancelotti has been handed a one-year prison sentence by a Spanish court after being found guilty of tax fraud committed during his first spell at Real Madrid. However, under Spanish law, the Italian is unlikely to serve any time behind bars.

A court in Madrid ruled that Ancelotti failed to properly declare image rights income during the 2014 tax year, resulting in a loss of €386,000 to the Spanish treasury. He has been ordered to repay the amount in full and has been fined accordingly. Additionally, he is barred from receiving public subsidies or financial benefits from Spanish state institutions going forward.

The case stems from Ancelotti's time as Real Madrid manager between 2013 and 2015. Spanish prosecutors initially accused him of failing to declare over €1 million in earnings during the 2014 and 2015 tax years. While he was acquitted of wrongdoing for the 2015 period — relating to a separate €676,000 — the court found him guilty for 2014.

Ancelotti, 65, had argued that he did not qualify as a Spanish tax resident for the full duration of the period in question. However, the court rejected this defence and determined that the income in question should have been declared in Spain.

Despite the sentence, Ancelotti will not serve jail time. Under Spanish law, non-violent offenders without prior criminal records are generally eligible for suspended sentences if their prison term does not exceed two years. Provided Ancelotti remains law-abiding during the probation period, his one-year sentence will remain unenforced.

The ruling adds Ancelotti’s name to a growing list of high-profile football figures — including Lionel Messi, Cristiano Ronaldo, and José Mourinho — who have faced similar tax-related legal issues in Spain, often related to image rights earnings routed through complex international arrangements.

The verdict is unlikely to impact his current role as manager of the Brazilian national team, which he took over earlier this year after completing a second spell at Real Madrid. The Brazilian Football Confederation (CBF) has not issued a statement following the ruling.

Ancelotti, one of the most decorated managers in football history, has won domestic titles in four different countries and is a four-time UEFA Champions League winner. He is expected to lead Brazil into the 2026 FIFA World Cup, having agreed to a long-term deal that aims to restore the national team’s fortunes on the global stage.

Legal experts say the case highlights ongoing scrutiny from Spanish tax authorities over international income streams in football, particularly in cases where residency rules and image rights structures create grey areas.