Real Madrid coach Carlo Ancelotti has denied any wrongdoing as his trial for alleged tax fraud began in Spain on Wednesday.
The 65-year-old Italian is accused of failing to pay more than one million euros in taxes from his image rights earnings in 2014 and 2015, during his first spell at Real Madrid.
Prosecutors claim Ancelotti only declared his salary from the club while hiding extra earnings using a complex system of companies. They are seeking a jail sentence of four years and nine months.
Ancelotti told the court in Madrid that he followed the advice of the club when setting up a company to receive part of his income.
“I never realised that something wasn’t right,” he said. “At that time, all the players and coaches were doing it that way, it seemed like the right thing to do.”
He explained that Real Madrid connected him with financial advisors, and he trusted them to handle everything.
“I didn’t deal with it because I had never been paid that way before,” Ancelotti added.
His son Davide, who is also an assistant coach at Real Madrid, and his wife, Mariann Barrena, testified in court, while his stepdaughter, Chloe McClay, spoke via video link from Los Angeles.
Ancelotti told reporters after the first day of trial that he felt “good” and “at ease.” The trial will continue on Thursday, and both sides may reach an out-of-court settlement.
Spain has been cracking down on tax fraud in football. Former Real Madrid coach Jose Mourinho, as well as football stars Lionel Messi and Cristiano Ronaldo, have all faced similar charges in the past. They received suspended sentences after agreeing to pay their outstanding taxes.
Ancelotti first coached Real Madrid between 2013 and 2015, before returning in 2021. He has won league titles in Spain, England, Germany, France, and Italy and holds the record for the most Champions League wins as a coach.
