A Spanish court on Wednesday sentenced Brazil manager Carlo Ancelotti to a one-year prison term for tax fraud linked to his time in charge of Real Madrid. The ruling also imposed a fine of 386,000 euros (452,000 dollars).

The Madrid court found Ancelotti guilty of defrauding the Spanish state of approximately 1 million euros (1 million dollars) in 2014 and 2015. Prosecutors had pursued a far steeper penalty, seeking up to four years and nine months in prison across two counts of tax fraud.

Their case accused Ancelotti of deliberately concealing portions of his income through a network of shell companies, including at least one entity registered in the Virgin Islands that prosecutors said had 'any real (economic) activity'. They argued this structure was designed to obscure earnings from his image rights.