Real Madrid Coach Carlo Ancelotti Denies Tax Fraud Allegations in Court
Carlo Ancelotti, the current coach of Real Madrid, has taken the stand in a Madrid court to address allegations of tax fraud involving undeclared earnings exceeding 1 million euros from his image rights. The 65-year-old Italian, who has also managed notable clubs like Chelsea and Everton, asserts that he believed his financial matters were in order and never considered the possibility of committing fraud.
Prosecutors have brought forth claims that Ancelotti exploited shell companies based outside of Spain to hide the true beneficiary of his income derived from image rights during 2014 and 2015. They are seeking a substantial punishment, which includes a prison sentence of four years and nine months, alongside a staggering fine of 32 million euros.
On the first day of the two-day trial, Ancelotti emphasized that he had primarily focused on his salary rather than the complexities surrounding image rights. "I've never been bothered about image rights," he stated, adding, "it's the players who sell shirts. I was only concerned about getting the six million net for three years and was never informed that there could be any issues."
The former coach remarked that when Real Madrid suggested a payment plan where 15% of his salary would be peered through image rights, he accepted the arrangement without hesitation and entrusted financial matters to his British adviser. "I thought it was quite normal, and I never assumed there was anything amiss," he explained.
Ancelotti maintains that he was under the impression that his actions were legitimate and seamless with the practices of other coaches and players. "Given that I'm here, I guess things weren't done that right," he conceded during his testimony.
The allegations include failing to report earnings that totalled approximately 1,062,079 euros from the sales of his image rights, which were reported as 1.24 million in 2014 and nearly 2.96 million the following year. Despite this, Ancelotti firmly denies the charges, stating his complete faith in the justice system. "I'm obviously annoyed by the implication of fraud, but I have total confidence in justice," he asserted.
The scrutiny of Ancelotti's financial dealings places him among a series of high-profile football figures who have faced legal repercussions from Spanish tax authorities in recent years. Notably, in 2016, Lionel Messi and his father were sentenced to 21 months in prison for tax evasion related to Messi's image rights while at Barcelona, though both received suspended sentences due to their lack of prior criminal records. Similarly, Cristiano Ronaldo admitted to tax fraud during his tenure at Real Madrid, leading to a hefty fine of 18.8 million euros after reaching an agreement with the authorities.
The extensive history of tax-related inquiries into football stars highlights an ongoing battle between athletes and tax enforcement in Spain, emphasizing the complexities surrounding image rights and financial management in the sports industry. As Ancelotti's trial continues, the outcome could significantly impact not only his career but also serve as a precedent for how image rights are treated in relation to taxation in the future.
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