A Spanish court has sentenced former Real Madrid manager Carlo Ancelotti to one year in prison for tax fraud relating to undeclared income from image rights in 2014.
The ruling, delivered on Wednesday, does not require the Italian coach to serve jail time, as the sentence is under two years and he has no prior criminal record.
Spanish prosecutors had accused Ancelotti of using a network of shell companies to conceal income from image rights during his initial tenure at Real Madrid in 2014 and 2015. The authorities claimed he failed to pay more than one million euros in taxes and initially requested a sentence of four years and nine months in prison.
At a high-profile trial in April, Ancelotti rejected the allegations of intentional wrongdoing. He stated he did not understand that an arrangement enabling part of his salary to be paid through image rights companies would result in reduced tax payments. “I never realised that the way my image rights were being managed could be considered tax evasion,” he told the court.
In its ruling, the Madrid court convicted Ancelotti of “an offence against the treasury... to the punishment of one year in prison” and ordered him to pay a fine of 386,361 euros (approximately $452,821). However, the court cleared him of any wrongdoing related to the 2015 tax year.
Under Spanish law, first-time offenders receiving a prison sentence of under two years are typically not required to serve time behind bars. Ancelotti, currently the head coach of Brazil’s national football team, no longer resides in Spain.
Ancelotti is one of the most decorated managers in modern football. His coaching career includes stints at elite clubs such as Chelsea, Bayern Munich, Paris Saint-Germain, AC Milan, and Real Madrid, where he managed during the years under investigation.
Ancelotti managed Real Madrid from July 2021 to May 2025, winning two UEFA Champions League titles, two La Liga titles, and two Copa del Rey trophies. However, he faced heavy criticism from fans during his final season for giving limited playing time to Turkish rising star Arda Guler.