Carlo Ancelotti faces court over alleged tax evasion during first stint at Real Madrid

The veteran coach has denied the allegations, stressing that he "never thought about committing fraud" as he took the stand on the first day of his trial.

The case revolves around claims that Ancelotti failed to report over 1 million euros in image rights earnings in his Spanish tax returns for the years 2014 and 2015, a period when he was leading Madrid to success. Prosecutors argue that he only declared his salary, neglecting to disclose the additional income from image rights - a potential breach of Spainâ™s tax laws.

In his testimony, Ancelotti, speaking candidly, maintained that he never had any reason to believe his financial dealings were anything other than legitimate. "For me, everything was in order," he said, adding that he was unaware of any tax investigation into his finances at the time.

The 64-year-old coach arrived at the courthouse in Madrid alongside his son, Davide, and partner Mariann Barrena, marking a highly public moment in an already turbulent legal matter. He took the stand for just under 40 minutes, emphasizing his commitment to transparency throughout his career.

"When I joined Real Madrid in 2013, the club offered me a net salary of 6 million euros, and I was advised on how it should be structured," Ancelotti explained. "I passed that information along to my tax advisor in the UK. Coaches, unlike players, donâ™t focus on image rights. For me, it was always about earning that €6 million net over three years."

The Italian manager went on to argue that he had never been informed that something might be amiss with his tax filings, noting that he had no reason to think that his image rights income needed to be reported separately.

The Spanish authorities, however, have charged Ancelotti with evading tax payments by failing to include his image rights income in his returns for the two years in question. As a result, prosecutors are seeking a sentence of four years and nine months in prison, along with a fine of 3.2 million euros.

Ancelottiâ™s case adds to a growing list of high-profile figures in the football world who have faced legal scrutiny over their financial affairs in Spain. Players like Cristiano Ronaldo and Diego Costa have also been caught up in similar tax evasion investigations, though many have settled out of court with hefty fines. Notably, the case of Xabi Alonso, the former Spain international and current Bayer Leverkusen coach, was recently resolved in his favor, with Spainâ™s Supreme Court upholding his acquittal after he refused to settle and chose to contest the charges.

Ancelotti, however, has expressed his full confidence in the Spanish justice system. "I am looking forward to testifying in court," he told reporters in a press conference last week. He also made it clear that he had been cooperating fully with tax authorities, with the Spanish tax office reportedly seizing the owed amount, plus interest, ahead of the trial.

The legal proceedings are scheduled to unfold over three days, with the possibility of an out-of-court settlement still hanging in the balance.

This trial comes as Ancelotti is in the midst of his second stint at Real Madrid, where he has led the club to two La Liga and Champions League doubles since returning in 2021. On Tuesday, Madrid secured their place in the Copa del Rey final with a thrilling 4-4 draw against Real Sociedad, progressing 5-4 on aggregate.

Ancelotti's career spans decades, both as a player and a coach. As a player, he earned 26 caps for Italy and was part of the 1990 World Cup squad. As a coach, his record is unparalleled, having won five Champions League titles-two with AC Milan and three with Real Madrid-cementing his legacy as one of the most decorated managers in the sport.

The legal battle will undoubtedly be another chapter in the long and illustrious career of Carlo Ancelotti, with the outcome yet to be determined.

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