The prosecution alleged that during his first stint as Real Madrid manager from 2014 to 2015, Ancelotti created a system of shell companies to hide extra earnings, particularly through image rights. It was claimed that he failed to pay more than one million euros in taxes due to undeclared earnings during those years.

Ancelotti denied intentionally committing fraud during his highly publicized trial in April. He stated that he was not aware that a scheme allowing him to collect part of his salary in image rights would result in lower tax payments.

According to the court's ruling, Ancelotti has been convicted of an offence against the treasury and has been sentenced to one year in prison, along with a fine of 386,361 euros. However, as the sentence is less than two years and Ancelotti has no prior criminal record, he will not be required to serve prison time.

The court cleared Ancelotti of the fraud allegation for the 2015 tax year.

Ancelotti has managed several prominent football teams throughout his career, including Chelsea, Bayern Munich, and Paris Saint-Germain. At the time of the court's ruling, he no longer resides in Spain.