Spanish state prosecutors have requested a jail term of four years and nine months for Real Madrid coach Carlo Ancelotti for the Italian’s alleged defrauding of the country’s tax office. In a statement released on Wednesday, Madrid’s regional state prosecutor accused Ancelotti, 64, of two counts of tax fraud from 2014 to 2015 regarding his earnings for image rights that add up to over €1 million ($1.09m).
Income Tax Filings and Image Rights
According to the prosecutors, in his income tax filings, Ancelotti “omitted the income corresponding to the exploitation of his image rights that he had transferred to other entities.” The prosecutor calculated the loss incurred taking into account rents and income omitted, totaling €1,062,079, with €386,361 in the fiscal year 2014 and €675,718 in the fiscal year 2015.
Throughout the past decade, numerous players and coaches have been investigated by Spanish tax authorities for issues revolving around income from image rights. The high profile cases of Lionel Messi, Cristiano Ronaldo, and Xabi Alonso stand out as examples of similar instances where legal action was taken concerning tax declarations and image rights.
Carlo Ancelotti returned to take the helm at Real Madrid in June 2021 after previously being dismissed in May 2015. Despite the ongoing legal proceedings, Ancelotti signed a new contract with Los Blancos until June 2026, showcasing the club’s confidence in his abilities as a coach.
The case against Carlo Ancelotti serves as a reminder of the importance of adhering to tax regulations, especially when it comes to income from image rights. The legal actions taken by the Spanish state prosecutors highlight the consequences that can arise from alleged tax fraud. The outcome of this case will not only impact Ancelotti’s reputation but also shed light on the ongoing scrutiny faced by high-profile figures in the sports industry when it comes to financial matters.
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