The news about Carlo Ancelotti that concerned the Italian and would complicate his future in Brazil.

In a significant development for the world of football, Carlo Ancelotti, the current manager of the Brazil national team and former coach of Real Madrid, has been sentenced to a one-year prison term for tax fraud. The verdict was handed down by a Spanish court on Wednesday, July 9, 2025, concluding a legal process that has spanned several months.

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The charges against Ancelotti stem from his initial tenure as manager of Real Madrid in 2014. According to court documents and reports from the Spanish news agency EFE, the Italian coach was found guilty of failing to declare income from his image rights. This type of financial oversight or alleged evasion has been a common issue for high-profile football figures in Spain, leading to numerous legal cases in recent years.

While the sentence of a one-year prison term has been confirmed, it is important to note that Spanish law typically dictates that sentences under two years for non-violent crimes, particularly for first-time offenders, do not require actual jail time. This suggests that Ancelotti is unlikely to serve time behind bars. However, the ruling still carries significant weight, marking a legal conviction against one of football's most decorated managers.

In addition to the prison sentence, the court has also imposed a fine of €386,361.93 (approximately $452,000 USD). Ancelotti has also been reportedly barred from receiving public subsidies or enjoying tax or social security benefits in Spain for the next three years.

During the trial, which took place earlier this year, Ancelotti reportedly maintained that he had no intention of defrauding the Spanish Treasury. He stated that he followed the advice of the club and his financial advisors regarding the structure of his income and image rights. Despite his defense, the court found sufficient evidence to convict him for the tax offenses committed in 2014. He was, however, acquitted of similar charges for the 2015 fiscal year.

This verdict introduces an element of uncertainty regarding Ancelotti's future with the Brazil national team. He officially took over the managerial role of the Seleção earlier this year, a highly anticipated move that saw him become the first full-time foreign coach of Brazil in a century. The Brazilian Football Confederation (CBF) had expressed great optimism about his appointment, envisioning a new era of success under his leadership.

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While the immediate impact on his coaching duties for Brazil remains to be seen, a legal conviction of this nature can undoubtedly present challenges and create a distraction. The CBF has yet to issue an official statement regarding the implications of this ruling on Ancelotti's position. The football world will be closely monitoring the situation for any further developments as Ancelotti and his legal team navigate the aftermath of this significant court decision.