Carlo Ancelotti, the Brazil national team coach, was sentenced to a one-year prison term by a Spanish court.
The reason for his sentence is due to accusations of tax fraud committed in 2014 during his first stint as Real Madrid manager.
He was found guilty of failing to pay €386,361 in taxes on his image rights revenues, and the court imposed a fine of €386,361.93 (approximately $452,000) and barred him from receiving public subsidies or tax benefits in Spain for three years.
Spanish prosecutors had accused Ancelotti of defrauding the state of €1 million in 2014 and 2015, alleging he used shell companies, including one in the Virgin Islands, to conceal his earnings.
However, he was acquitted of a second tax fraud charge related to 2015, as the court could not prove he stayed in Spain long enough that year to incur tax liabilities.
He repaid €1.5 million to the Spanish tax authorities in 2021 and maintained during his trial that he relied on his financial advisers.
He stated that he “never thought a fraud could have been committed as he is continualy committed to doing the right thing.