Real Madrid coach Carlo Ancelotti's tax fraud trial concluded on Thursday in Spain, with prosecutors standing firm on their demand for a four-year and nine-month jail sentence.
The Italian manager faces serious allegations of tax evasion amounting to more than one million euros and has always denied any wrongdoing.
Prosecutors claim Ancelotti failed to declare earnings from image rights during his first spell at the Spanish club in 2014 and 2015.
Ancelotti denied any intentional wrongdoing when he took the stand on Wednesday at the High Court of Justice in Madrid.
Real Madrid coach Carlo Ancelotti's tax fraud trial concluded on Thursday in Spain, with prosecutors standing firm on their demand for a four-year and nine-month jail sentence
REUTERS
"I never considered committing fraud," the 65-year-old told the court during his testimony.
Prosecutors allege Ancelotti only reported his salary from Real Madrid whilst omitting income from image rights in his tax returns.
They claim he established a "confusing" and "complex" system of shell companies to hide additional earnings.
These shell companies allegedly concealed income from image rights and other sources, including real estate.
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Carlo Ancelotti has denied any wrongdoing with the Real Madrid boss adamant he's innocent amid his tax fraud trial
REUTERS
The case centres on the period of Ancelotti's first tenure at Real Madrid between 2013 and 2015.
Ancelotti told the court he never realised that the company structure he had established for his image rights allowed him to pay less tax.
In his defence, the 65-year-old claimed the payment system had been proposed to him by Real Madrid.
"When the club suggests it to me, I put Real Madrid in touch with my advisor. I didn't deal with it because I had never been paid that way," he said.
"I never realised that something wasn't right.
"At that time, all the players and coaches were doing it that way; it seemed like the right thing to do."
Ancelotti specifically mentioned that former Real Madrid coach Jose Mourinho used a similar system.
The Italian arrived at the court accompanied by his wife Mariann Barrena and son Davide, who serves as his assistant manager at Real Madrid.
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The parties could potentially reach an out-of-court agreement at any point during the legal process.
Despite the serious nature of the charges, Ancelotti has continued his duties as Real Madrid manager throughout the proceedings.
Ancelotti first took over at Real Madrid in 2013, leaving in May 2015 before joining Bayern Munich the following year.
The former Italy international midfielder enjoyed a distinguished playing career, winning the European Cup twice with AC Milan.
Carlo Ancelotti: Real Madrid boss has won the Champions League five times as a manager throughout his career
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His managerial career has been equally impressive, with stints at Napoli and Everton before returning to Real Madrid in 2021.
Ancelotti has amassed an impressive collection of trophies as a manager.
He has won domestic league titles with Real Madrid, AC Milan, Chelsea, Bayern Munich and Paris Saint-Germain.
Ancelotti is the only manager to reach six Champions League finals, with the veteran overseeing five triumphs.
