Brazil national team head coach and former Real Madrid manager, Carlo Ancelotti, has been sentenced to one year in prison over a tax fraud case in Spain. The charge relates to alleged irregularities in his financial reporting during the year 2014, his first season as manager of Los Blancos.
Ancelotti now joins a growing list of football legends who have faced legal trouble with the Spanish tax authorities. From Lionel Messi and Cristiano Ronaldo to Jose Mourinho, Spain’s tax system seems to have become a legal minefield for global football superstars.
Though it’s highly unlikely that Ancelotti will actually serve time behind bars—under Spanish law, first-time non-violent offenders with sentences under two years often avoid jail—this case shines a harsh spotlight on a systemic and recurring problem in Spanish football: the legal gray zone of image rights taxation.
The Carlo Ancelotti Case: A Deeper Look
According to prosecutors, Ancelotti failed to declare over €1 million in earnings linked to image rights during his tenure at Real Madrid. Although he has consistently maintained his innocence, Spanish courts have found discrepancies in the way his earnings were reported.
As part of the ruling, the Italian manager has been ordered to pay over €386,000 in penalties. Speaking at the court hearing in April, Ancelotti stated that he had followed what he believed to be standard industry practice at the time:
“To me, everything was in order. This was a normal approach that many players and coaches used back then,” Ancelotti explained during his defense.
Image Rights: The Legal Gray Zone That Traps the Stars
The common thread among many of these high-profile tax cases lies in image rights income—revenue athletes earn from endorsements, sponsorships, and promotional activities. In many cases, these earnings are funneled through offshore companies to optimize tax liability.
However, Spain’s tax laws surrounding global image rights are notoriously complex and ambiguous. The Spanish tax authority struggles to determine what portion of globally earned image rights income should be taxed within Spain.
Because there is no fixed legal threshold or universally accepted rule, minor differences in accounting or interpretation can quickly escalate into full-blown accusations of tax evasion.
A Growing List of Football Royalty in Legal Trouble
Carlo Ancelotti is not the first—nor will he likely be the last—football figure associated with Real Madrid to face such charges. Perhaps the most famous case involved Cristiano Ronaldo, who settled his case in 2019 by paying €18.8 million in back taxes and fines. He also received a 23-month suspended sentence for tax fraud committed between 2010 and 2014.
Jose Mourinho, another ex-Madrid manager, was accused of failing to declare €3.3 million in earnings related to his image rights. Like Ronaldo, he also received a one-year suspended sentence and paid a hefty €2 million fine.
These cases highlight a concerning pattern that has persisted for over a decade: football professionals working in Spain frequently become targets of tax investigations, even if they follow what they believe to be lawful practices.
Not Just Madrid: Barcelona and La Liga Icons Also Affected
The issue is not limited to Real Madrid. Lionel Messi, arguably Barcelona’s greatest-ever player, was also caught in the web of Spanish tax law. In 2016, he and his father were found guilty of hiding over €4.1 million in earnings through offshore companies based in tax havens. Both were handed 15-month suspended sentences and fined heavily.
Other Barcelona legends, including Neymar, have faced similar scrutiny. Neymar’s case, however, centered more around the corruption and irregularities in his transfer from Santos to Barcelona rather than pure tax evasion.
A long list of other top players have also faced tax-related charges, including Luis Figo, Luka Modric, Samuel Eto’o, and Xabi Alonso—proving the problem is widespread and affects both past and present footballers across La Liga.
A System in Need of Reform
The recurring nature of these tax cases reveals not only a lack of clarity in Spanish law, but also a need for reform. Many of the individuals caught in these situations argue they followed advice from tax professionals and operated in line with industry norms.
The case of Carlo Ancelotti brings this issue back to the forefront at a time when Spain remains one of the most attractive football destinations. Yet unless clearer tax guidelines are introduced—particularly regarding image rights—players, managers, and clubs may continue to find themselves in the legal crosshairs.
For now, while Ancelotti won’t see the inside of a prison cell, the financial and reputational damage is real. And the question lingers: how many more stars will be next in line to fall into Spain’s tax trap?
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