In a thrilling final, Spain lifted the FIFA World Cup trophy, securing the $50 million first-place prize. But the victory comes with a tax bill—and the IRS is ready to collect.
The IRS will take a cut of the $655 million total prize pot, no matter which country wins. "It doesn't make a difference who wins the game. The IRS will get a piece," said Robert Raiola, director of the sports and entertainment group at PKF O'Connor Davies, in an interview with MarketWatch.
It's not just the players who are on the hook. Coaches, team staff, and even referees are subject to U.S. taxes on their World Cup earnings. And because teams play in different countries, they have to navigate a maze of tax codes. Performance-based bonuses make income streams unpredictable, adding another layer of complexity.
Rob Fagan, senior manager in KPMG's Washington National Tax practice, noted that the U.S. has tax treaties with some countries that can affect how athletes' earnings are taxed. But here's the kicker: the final match between Spain and Argentina was held in New Jersey, a state that does not adhere to international tax treaties. That means the Spanish team will be taxed on their winnings from that game, regardless of any treaty with Spain.
Tax Breaks Don't Cover Players
While national soccer federations participating in the 2026 World Cup were expected to receive tax-exempt status, that exemption doesn't automatically trickle down to everyone involved. Even if a federation gets a federal tax exemption on its prize money, players, coaches, referees, and staff may still owe U.S. taxes on salaries, bonuses, endorsement earnings, and appearance fees earned during the tournament.
Their U.S. tax liability depends on applicable international tax treaties, which are designed to prevent double taxation and may offer exemptions or reduced taxes based on income thresholds. Tax treatment can also vary by country—for example, the U.S. has a tax treaty with Spain but not Argentina—and even among individuals on the same team.
World Cup's $9 Billion Revenue Boom
The expanded 2026 FIFA World Cup is expected to generate more than $9 billion in revenue, making it the most lucrative sporting event ever, according to FIFA estimates reported by CNBC. The tournament expanded from 32 to 48 teams and from 64 to 104 matches, creating more opportunities in broadcasting, ticketing, and advertising, which significantly boosted commercial revenue.
Notably, FIFA President Gianni Infantino's close relationship with President Donald Trump was a defining feature of the 2026 World Cup, co-hosted by the U.S., Mexico, and Canada.
Buoyed by strong ticket sales, Infantino has floated expanding the 2030 World Cup to 64 teams. The centenary tournament will have a $6 billion budget and is expected to be an even bigger event, with FIFA positioning it as a more attractive spectacle for broadcasters.
In June, Alec Boccanfuso, portfolio manager of the Gabelli Opportunities in Live & Sports ETF (GOLS), stated that the World Cup could accelerate soccer's adoption in the U.S., leading to lasting commercial benefits for clubs worldwide. This could potentially result in a 20%-30% uplift in soccer team valuation multiples if U.S. adoption accelerates post-2026, representing billions in incremental enterprise value for leading clubs. Boccanfuso argued that sports franchises are increasingly valuable due to growing revenue from media rights, sponsorships, ticket sales, and merchandise.
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