Footballers, in today's generation, earn unbelievable amounts of money every week. They rake in even more through image rights, sponsorship deals and more.
You all must be aware of Ronaldo's tax fraud case. The Juventus superstar appeared in court yesterday. And he has accepted a suspended 23-month prison sentence for tax fraud and will pay an €18.8m fine.
Here's a list of five football stars who were involved in a tax fraud case.
Cristiano Ronaldo
One of the most recognizable faces in modern soccer, Ronaldo was accused of failing to pay 14.7 million euros (US$16.5 million) in taxes by funneling income related to image rights (meaning his likeness, the very thing that Ronaldo capitalizes on) through a series of offshore companies.
The initial accusation in 2017 levelled at Ronaldo by prosecutors insisted that it was a "voluntary and conscious breach of his fiscal obligations in Spain". He has accepted a fine and a suspended jail term for tax fraud in Spain on Tuesday, signing a deal to settle a case which will cost him a total of €18.8 million (£16.5 million).
The 33-year-old Juventus forward is unlikely to serve any time in jail as the sentence was expected to be within a two-year threshold that can be served on probation as a first offence under Spanish law.
Lionel Messi
Messi has been within the eye of the fiscal hurricane since 2013. That year, he and his father, Jorge Horacio, were accused of tax evasion for approximately €4.16 million (US $ 5.5 million). Forbes reported that the Messi used a series of ghost companies in tax havens located in Brazil and Uruguay to evade taxes corresponding to contracts related to the player's image rights, which were signed since 2005.
Shortly after the accusation was made public and after having denied any intention to break the tax laws, father and son paid to the Spanish authorities a sum of €5 million (US $ 6.5 million) as a "corrective payment". This did not prevent the Barcelona star and his father from being called to trial in 2015 and sentenced a year later to 21 months in prison for tax evasion. Last year, the Messi appealed their case. This was, according to Forbes, in the reduction of the sentence of Jorge Horacio Messi to 15 months in prison, while the duration of the sentence of his son was maintained.
Neymar
The PSG superstar has also been found guilty of tax fraud for failing to report his earnings. However, Neymar’s case is a little more complicated. At its root, here’s what it involved: FC Barcelona wooed Neymar while he was at another club, and was accused of lying about the amount of the contract to Neymar’s former club (and to the public). The difference in the contract price and the amount paid was allegedly directed to a Brazilian company controlled by Neymar’s father. Spanish prosecutors assert that the payments were disguised to avoid reporting and tax requirements.
Initially, Neymar and his father denied any wrongdoing, suggesting that any resulting tax consequences would be addressed in Brazil. That’s exactly what happened: In 2015, Brazilian Judge Carlos Muta charged Neymar with “omitting sources of income from abroad” from 2011 to 2013, resulting in a tax loss to the government of nearly $20 million. Judge Muta ordered 188.8 million reals (US$47.75 million) of Neymar’s assets frozen.
In 2017, Neymar’s lawyer declared that Neymar was willing to pay a fine of £1.9 million (US$2.49 million) to settle those claims. While Neymar was ultimately cleared of tax fraud, he was levied with a fine of 3.8 million Brazilian reales (US$1.18 million) for actions related to his case. Judge Muta said that Neymar’s conduct “characterizes litigation of bad faith and a detrimental act to the dignity of Justice.”
In 2015, a court in Spain found that there was enough evidence to go to trial over allegations tied to the transfer. Those pegged for prosecution included FC Barcelona, club president Josep Bartomeu and former club president Alexandre “Sandro” Rosell (Rosell resigned in 2014 over the scandal, though more legal troubles followed him). FC Barcelona eventually paid taxes and fines related to the matter in what it called “an error in tax planning.” Neymar had warned that the tax issues could cause him to leave Spain, and in April of 2017, he signed with France’s Paris Saint-Germain.
James Rodriguez
What does James Rodriguez have in common with Luis, Ronaldo and Falcao? His agent, Jorge Mendes of Gestifute International. Mendes has been asked to appear in court to testify in tax trials involving Ronaldo and Falcao. He has previously testified that he “never advised players in tax matters.” He has also denied any role in creating shell companies for his clients.
Rodriguez has not been formally charged with wrongdoing, but according to various sources including Der Spiegel, he has been alerted that he is under investigation. A likely target of inquiry? The offshore company that manages his image rights.
Javier Mascherano
FC Barcelona saw another player added to the list of those accused of tax fraud in 2015. In a hearing that took a little more than ten minutes, Javier Mascherano admitted that he failed to pay taxes on earnings for the years 2011 and 2012. Like Messi, Mascherano’s tax woes involve assigning image rights to companies located in tax havens.
Before the plea, Mascherano did not admit any wrongdoing, but he did settle an outstanding tax bill by paying €1.5 million (US$1.69 million) in taxes plus €200,000 (US$225,860) in interest.
Following his guilty plea, Mascherano was fined €815,000 (US$880,078) and sentenced to 12 months in prison (four months for the 2011 charges and eight months for the 2012 charges). The prison sentence is largely ceremonial since, those who are sentenced to light sentences in Spain generally dont serve time.