Real Madrid manager Carlo Ancelotti appeared in court in Madrid on Wednesday for the opening of his trial on tax evasion charges, which could potentially land him a four-year prison sentence.
The 65-year-old Italian is accused of deliberately misleading the Spanish tax authorities during his first stint as the coach of the Spanish giants between 2014 and 2015.
Specifically, he is alleged to have avoided paying over €1 million (£833,000) in income tax by misreporting earnings related to the transfer of his image rights to the club.
Ancelotti arrived at the Provincial Court of Madrid on the morning of his trial and was seen sitting in the dock, facing the charges.
When questioned about his earnings from the image rights deal, he claimed that he was unaware of any wrongdoing.
“I was only concerned with collecting six million net for three years, and I never realized anything was wrong, and I never received any communication that the Prosecutor’s Office was investigating me,” Ancelotti stated.
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He went on to explain that when Real Madrid proposed the transfer of his image rights, he consulted his English advisor, who also did not raise any concerns.
The manager has consistently denied any illegal actions, arguing that he did not believe the transaction could be considered fraudulent.
“If I’m here, I believe things weren’t so correct,” he added, acknowledging that mistakes may have been made, but maintaining that he did not intentionally break the law.
Ancelotti admitted to underpaying taxes in 2014, blaming the mistake on his accountants, but insisted that in 2015, he did not meet the 183 days in Spain required to be considered a tax resident.
However, prosecutors contend that his primary source of income during this period came from Real Madrid, as he did not take charge of Bayern Munich until 2016.
Prosecutors have called for a four-year prison sentence if Ancelotti is found guilty of the charges.
The coach has previously expressed his confidence in his innocence, stating, “This is an old story. I’m convinced I’m innocent, and the case is in the hands of my lawyers. Let’s see what the judge decides.”
