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Carlo Ancelotti, newly appointed manager of the Brazilian national team, has been handed a one-year prison sentence by a Spanish court after being found guilty of tax evasion.

 

The conviction relates to unpaid taxes amounting to €1 million on image rights income during his first stint as Real Madrid head coach between 2013 and 2015.

 

The 66-year-old, who concluded a second spell with Real Madrid earlier this year, will not serve time behind bars due to Spanish legal provisions. In Spain, sentences under two years for non-violent offences are typically suspended for first-time offenders.

 

Although Ancelotti will avoid imprisonment, the court has imposed a financial penalty of €386,361.93 (approximately £333,000). The Italian manager had already repaid the full amount of the tax debt in December 2021.

 

During the trial, Ancelotti told the court he had no intention of committing fraud and placed responsibility for the structuring of his income on financial advisers.

 

“I never thought about committing fraud,” he said, adding that his €6 million net salary from Real Madrid had been managed in a way he believed to be standard at the time, pointing to similar practices used by players and coaches at the club.

 

His sentencing comes just days after Real Madrid were eliminated from the FIFA Club World Cup, suffering a heavy defeat to Paris Saint-Germain.

 

Ancelotti joins a growing list of high-profile football figures who have come under scrutiny from Spain’s tax authorities. In previous years, Lionel Messi, Cristiano Ronaldo, and José Mourinho have all faced legal action over undeclared income, primarily related to image rights.

 

While some initially received prison sentences, all ultimately avoided jail by agreeing to pay substantial fines.

 

With this case now concluded, Ancelotti will turn his focus to his new role leading the Brazilian national team, a position he is expected to formally begin later this year.

 

Despite the legal setback, his appointment has been well received in Brazil, where expectations remain high for the team’s future under his leadership.