Real Madrid coach Ancelotti to go on trial for tax evasion

Real Madrid coach Carlo Ancelotti is expected to appear in court on Wednesday for the first day of a trial in which he is accused of failing to pay 1 million euros (AED 3.7 million) in tax on revenue from image rights during his first spell at the club.

Ancelotti is the latest of several soccer celebrities to be investigated by the Spanish tax authority for alleged tax fraud. Many cases, including those of leading players such as Portugal's Cristiano Ronaldo and Spain's Diego Costa, have been settled out of court with large fines.

In 2023, however, the Supreme Court upheld the acquittal of Bayer Leverkusen coach Xabi Alonso after he refused to settle and defended his innocence.

The prosecutor is seeking a prison term of four years and nine months and a fine of 3.2 million euros (AED 13 million) for two counts of tax evasion in 2014 and 2015.

It argues that Ancelotti had only reported the salary he was paid by Real Madrid and had omitted income from his image rights in his tax returns.

Ancelotti told reporters last week he had complete trust in the Spanish justice system and that he was looking forward to testifying in court.

Before the hearing, the prosecutor said Spain's tax authority had seized the debt plus interests from Ancelotti.

The trial is scheduled to take place in a Madrid court over three days. The parties could reach an out-of-court agreement before the hearing starts or at any point in the process.

Ancelotti, a former player who was capped 26 times for Italy and played in the 1990 World Cup, returned to Real Madrid for a second stint as coach in 2021.

He has won the Champions League five times as a coach, twice with AC Milan and three times with Real.