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Real Madrid coach Ancelotti faces prison time in tax fraud case

Spanish prosecutors on Wednesday called for Real Madrid coach Carlo Ancelotti to be jailed for four years and nine months, saying he had failed to declare earnings to the tax office.

Published: 6 March 2024 12:38 CET
Real Madrid coach Ancelotti faces prison time in tax fraud case
Real Madrid's Italian coach Carlo Ancelotti gives a press conference on the eve of the UEFA Champions League last 16 second leg football match against RB Leipzig at the Ciudad Real Madrid training ground in Valdebebas, outskirts of Madrid, on March 5, 2024. (Photo by PIERRE-PHILIPPE MARCOU / AFP)

Madrid state prosecutor’s office accused the 64-year-old Italian of having cost Spain’s treasury more than one million euros in undeclared earnings from image rights in 2014 and 2015.

“Although he himself declared himself to be a tax resident in Spain and indicated that his home was in Madrid, he only declared in his tax returns the personal remuneration received from Real Madrid,” the tax office said in a statement.

It accused Ancelotti of allegedly setting up a “confusing” and “complex” system of shell companies to hide his extra earnings from his image rights.

Prosecutors also alleged the Real Madrid coach “simulated” the transfer of his image rights to entities “without any real activity” based outside of Spain to maintain “opacity vis-a-vis” the Spanish treasury.

A Spanish court in July ordered Ancelotti – regarded as one of the greatest coaches of all time – to stand trial over the affair, but no date has been set.

Spanish crackdown

Spain has cracked down in recent years on celebrities like football stars Lionel Messi and Cristiano Ronaldo for not paying their full due in taxes.

Both players were found guilty of tax evasion and received prison sentences that were waived for being first-time offenders.

Colombian superstar Shakira in November agreed to receive a three-year suspended sentence and pay €7.3 million in fines to settle a tax fraud case and avoid trial.

Prosecutors had accused the “Hips Don’t Lie” singer of defrauding the Spanish state of €14.5 million ($15.7 million) on income earned between 2012 and 2014, charges Shakira had denied, saying she only moved to Spain full time in 2015.

Ancelotti took over at Real Madrid in 2013, leaving in May 2015, before being appointed at Bayern Munich the following year.

He later managed Napoli and Everton before returning to Real Madrid in 2021.

Ancelotti had been tipped to coach Brazil’s national team when his contract with Real Madrid ended but instead in December he extended it to June 2026.

Ancelotti has won the Champions League four times — twice with AC Milanand on two occasions with Real Madrid.

He has won domestic league titles with Madrid and Milan, in England with Chelsea, in Germany with Bayern Munich and in France with Paris Saint-Germain.

Madrid face RB Leipzig on Wednesday in a Champions League last-16 second leg clash, after Ancelotti’s side carved out a 1-0 advantage in Germany.

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POLITICS

‘Pedro stay!’: Thousands of Spanish PM’s supporters take to the streets

Thousands of supporters of Spanish Prime Minister Pedro Sanchez rallied at the headquarters of his Socialist party imploring him not to step down over a graft investigation against his wife.

Published: 27 April 2024 15:50 CEST
'Pedro stay!': Thousands of Spanish PM's supporters take to the streets

The 52-year-old, who has been in office since 2018, stunned Spain on Wednesday when he put his resignation on the line after a Madrid court opened a preliminary investigation into suspected influence peddling and corruption against his spouse Begona Gomez.

Sanchez said he would suspend all public duties until he announces his decision on Monday. The normally hyperactive premier has since remained out of sight and silent.

“I need to stop and think whether I should continue to head the government or whether I should give up this honour,” he wrote in a four-page letter posted on X, formerly Twitter.

Supporters on Saturday held up placards saying “Spain needs you”, “Pedro don’t abandon us’, and shouted slogans such as “Pedro leader”.

“I hope that Sanchez will say on Monday that he will stay,” said Sara Domínguez, a consultant in her 30’s, adding that his government had “taken good steps for women, the LGBT community and minorities”.

Jose María Diez, a 44-year-old government official who came from Valladolid in northern Spain to express his support, said there was a real possibility that the far-right could take power if Sanchez quit.

“This will mean a step backwards for our rights and liberties,” he warned.

Inside the party headquarters, there were similar passionate appeals.

‘Pedro stay’

“Pedro stay. We are together and together we can … take the country forward, Spain can’t step back,” said Budget Minister Maria Jesus Montero, the government number two.

“Today all democrats, all progressives, are summoned to Madrid against a pack whose only aim is to overthrow a democratic and legitimate government,” said Felix Bolanos, Minister of the Presidency, Justice and Parliamentary Relations.

At one point, Socialist leaders took to the streets to thank those gathered. “They won’t succeed,” government spokeswoman Pilar Alegria told the crowd.

The court opened the investigation into Sanchez’s wife in response to a complaint from anti-corruption pressure group Manos Limpias (Clean Hands), whose leader is linked to the far right.

The group, which has presented a litany of unsuccessful lawsuits against politicians in the past, said on Wednesday its complaint was based on media reports and could not vouch for their veracity.

While the court did not give details of the case, online news site El Confidencial said it focused on links Gomez had to Spanish tourism group Globalia when carrier Air Europa was in talks with the government to secure a huge bailout.

The airline sought the bailout after it was badly hit by plunging paseenger numbers during the Covid-19 crisis.

At the time, Gomez was running IE Africa Centre, a foundation linked to Madrid’s Instituto de Empresa (IE) business school, which had signed a sponsorship agreement with Globalia in 2020.

Spain’s public prosecutors office on Thursday requested the dismissal of the investigation, which Sanchez said was part of a campaign of “harassment” against him and his wife waged by “media heavily influenced by the right and far right”.

If Sanchez decides to remain in office, he could choose to file a confidence motion in parliament to show that he and his minority government are still supported by a majority of lawmakers.

If he resigns, an early election could be called from July — a year after the last one — with or without Sanchez at the helm of the Socialist party.

The right-wing opposition has accused the prime minister of being irresponsible for putting the country on hold while he mulls his decision.

“It’s very clear to us that this is all a tactic… We know Pedro Sanchez and things with him always turn out like a soap opera,” Cuca Gamarra, the number two of the main opposition conservative Popular Party, said on Friday.

“He is making us all wait and the country is at a standstill,” she added.

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