Carlo Ancelotti blames Real Madrid over €1m missed tax payment as Los Blancos manager appears in court accused of fraud

The 65-year-old has been accused of failing to include income from image rights in his tax returns during his first stint as Madrid boss, which lasted from 2013 to 2015. The Italian was initially charged in 2020 over €1 million due in taxes and a prison sentence of four years and nine months plus a fine of €3.2m was requested by the Spanish Public Prosecutor’s Office.

Within 12 hours of the end of his team's penalty shootout win in the Copa del Rey semi-final against Real Sociedad, Ancelotti appeared in court in Madrid, where it was revealed that he has already repaid the €1.5m to the tax authorities.

Ancelotti argued in court that Madrid proposed he receive part of his salary as a loan to his image rights, but he believed that it would all go to the salary he had agreed on with the club - a total of €6m net.

"I have never thought of committing fraud. I have never had a company for image rights except for these two years," he said, arguing that it was Madrid's obligation to square things up with the tax authorities.

"I was only concerned with collecting the net €6m over three years, and I never realised anything was wrong, nor did I receive any notification that the Prosecutor's Office was investigating me."

Ancelotti's case has not yet been resolved but the legendary coach will have to turn his attention to his team's La Liga clash against Valencia on Thursday.