A Spanish court has found Argentine footballer Lionel Messi guilty of tax fraud.
The soccer star has been sentenced to 21 months in prison. The sentence is significant because, as with Messi’s teammate, Javier Mascherano, who was also found guilty of tax fraud and sentenced to jail, in Spain, those who receive a light prison sentence do not usually serve time unless the offense involves a violent crime or if the defendant is a habitual offender. Typically, a light sentence is one under two years: Messi will likely serve his 21 months as probation.
Messi’s father, Jorge Messi, was also sentenced to jail and is not expected to serve any time.
The trial stems from charges filed in 2013 after Spanish tax authorities alleged that Messi’s father used a series of shell companies in tax havens to shield royalties and other licensing income from tax. In the scheme, which dated back to 2005, authorities claim that income from lucrative contracts with such companies as Pepsi-Cola, Procter & Gamble, and Adidas was funneled offshore to Belize and Uruguay through an elaborate maze of entities and countries to avoid paying income tax in Spain.
Messi consistently maintained throughout the proceedings that he did not do anything wrong. Nonetheless, shortly after the charges against him were made public, he took steps to clear the tax debt, making a “corrective payment” of €5 million ($6.57 million U.S.). That did not, however, discourage Spanish tax authorities who ordered him to stand trial.
In the ruling, the court rejected Messi’s argument that he did not know about his financial arrangements. Messi had testified in June, “I was playing football. I had no idea about anything.” The 28-year-old football star also told the court that he did not actively participate in managing his finances, instead relying on others. “I trusted my dad and my lawyers,” he explained, noting that he did not read documents that he signed. “I only worried about playing football,” he claimed. The court found that if that were true, Messi had chosen to remain ignorant and should not benefit as a result.
You can read the statement from the court – in Spanish – here (downloads as a pdf).
Messi and Mascherano aren’t the only the only Spanish soccer players under the scrutiny of the Spanish courts. Messi’s club, FC Barcelona, thought to be worth $3.16 billion (second on Forbes’ list of the World’s Most Valuable Soccer Teams – just behind La Liga rival Real Madrid), was also expected to go to trial on tax fraud charges – those related to the signing of Santos Júnior, known to most of the world simply as Neymar. However, earlier this year, the club settled tax charges by agreeing to pay a hefty fine.
Messi is #2 on Forbes’ list of the World’s Highest Paid Athletes, just behind rival Cristiano Ronaldo (basketball “King” and NBA MVP LeBron James, tennis player Roger Federer and basketball star Kevin Durant round out the top five). Messi’s earnings are estimated to be $81.4 million, with $53.4 million in salary and winnings and $28 million in endorsements. That money will come in handy, as the court also fined Messi and his father millions of euros as punishment for their roles in the scheme.
It’s been a tough summer for Messi. The footballer, considered by many to be the best soccer player in the world, was injured in a friendly against Honduras just before the Copa America. Messi played in the Copa anyway, quickly becoming the leading scorer in the tournament and making Argentina a heavy favorite to win. However, in the finals, Messi, usually incredibly accurate, sent the ball soaring into the stands for an Argentine loss during penalty kicks. Messi announced his retirement from the national team that same night, saying:
Rough translation: “It is difficult, the time is hard for any analysis. In the dressing room I thought the national team was over for me, it is not for me.”
