The Prosecutor's Office in Spain is seeking a five-year prison sentence for Real Madrid boss Carlo Ancelotti for tax fraud.
- Ancelotti facing tax fraud charges
- Five-year jail sentence sought
- Relates to first stint as Real Madrid boss
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WHAT HAPPENED?
Ancelotti is facing two charges of having defrauded the Treasury of over €1 million (£850k) between 2014 and 2015 during his first stint as Real Madrid manager, according to Relevo. The Prosecutor's Office is now calling for a jail sentence of four years and nine months for the Italian.
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THE BIGGER PICTURE
The issue relates to Ancelotti only including renumeration from his job as Madrid manager in his tax return and allegedly not including income from image rights – instead transferring the sum to Vapia Limited. The amounts relate to €386,361 in 2014 and €675,718 in 2015. If found guilty, one of the most decorated managers in footballing history could see his career end in disgrace.
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DID YOU KNOW?
According to prosecutors, Ancelotti transferred his image rights to Vapia for a period of 10 years for £21m (€25) in July 2013 and then allegedly appointed himself at the helm of the company, before reducing that to three years and dropping the sale price to £854,000 ($1.06m). During his time at Madrid and while domiciled in Spain, Ancelotti allegedly 'omitted all income corresponding to the exploitation of his image rights' to the tune of £1.1m ($1.4m) in 2014 and £2.5m ($3.1m) the following year.
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WHAT NEXT?
Ancelotti, whose Madrid side sit top of La Liga, is likely to be asked about these accusations. The 64-year-old, who allegedly set up a 'complex' and 'confusing' network of trusts and companies that allowed his image right earnings to be domiciled outside of Spain, will wait to see what comes from this investigation.