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Real Madrid manager Carlo Ancelotti could face up to four years and nine months in prison after being accused of tax fraud in Spain.
The case, which has now ended in court, centres around claims that Ancelotti avoided paying over one million euros in taxes during his first spell at the club between 2013 and 2015.
Spanish prosecutors say Ancelotti failed to declare earnings from his image rights while only reporting his salary from Real Madrid. They allege he set up a “confusing” system of shell companies to hide money made from image rights and property deals.
Ancelotti, 65, gave evidence on Wednesday at the High Court in Madrid. He denied any intention to commit fraud, saying:
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I never considered committing fraud.
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He explained that he did not handle the financial setup himself and had followed advice from both Real Madrid and his own advisor.
When the club suggests it to me, I put Real Madrid in touch with my advisor. I didn’t deal with it because I had never been paid that way.
Ancelotti denies wrong doing
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The coach also claimed he didn’t know the arrangement could result in underpaying taxes.
He added:
I never realised that something wasn’t right. At that time, all the players and coaches were doing it that way; it seemed like the right thing to do.
Ancelotti even pointed out that former Real Madrid manager Jose Mourinho used a similar payment method.
He arrived at the court with his wife, Mariann Barrena, and son Davide, who also works as his assistant at the club.
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While Ancelotti continues to deny any wrongdoing, the final decision now lies with the Spanish court. If found guilty, he could face nearly five years in prison.