Here's Why Taxes Will Claim About Half Of The Wimbledon Winner's $4 Million Prize

Forbes

a day ago

Italy's Jannik Sinner advanced Friday to Wimbledon's final on Sunday against Spain's Carlos Alcaraz, joining American Amanda Anisimova and Poland's Iga Swiatek who compete Saturday in the women's final, as they all compete for the Grand Slam's $4 million prize—though tax analysts told Forbes their winnings will be cut nearly in half after paying required taxes.
The Grand Slam's winners will pay at least $2.9 million in combined taxes, though the runners-up ... More will also pay hefty fees. Getty Images
The U.K. taxes prize funds from Wimbledon and earnings from endorsements on equipment used in the tournament, and they also face an initial withholding tax of 20% before paying a tax up to 45% after related expenses are deducted, according to Andreas Bosse, an international tax legal consultant based in Monaco.
Wimbledon's £3 million grand prize (about $4.05 million) would likely be taxed at an effective rate of 36.52%, Sean Packard, OFS Wealth's tax director, told Forbes, lowering the winnings down to at least $2.5 million.
A $2 million prize awarded to the runners-up would be reduced by more than $700,000 to $1.2 million if taxed at the 36.52% rate.
Additional taxes each athlete might face in their home country. The U.S. requires additional tax payments, including self-employment levies or an additional Medicare surtax, Packard said, which could lower Anisimova's earnings further. Alcaraz would likely face Spain's highest income tax rate of 47%, Packard said, though Alcaraz would receive a tax credit for paying the U.K.'s levies to avoid being taxed twice. A combined income tax of at least 47% would reduce Alcaraz's grand prize to $2.1 million. Spain also incurs a wealth tax for its wealthiest residents, though it's not immediately clear what additional rate Alcaraz would pay. Swiatek will likely pay an additional 4% tax in Poland, reducing her championship or runner-up winnings by an additional $162,000 or $80,000, respectively. Surprising Fact
Sinner will pay no additional income tax outside of the U.K. because Monaco is his primary residence, Bosse said. Other top-ranked tennis players like Serbia's Novak Djokovic, whom Sinner defeated in Wimbledon's semifinals, as well as Russia's Daniil Medvedev, Denmark's Holger Rune and Greece's Stefanos Tsitsipas also reside in Monaco, in addition to Formula 1 drivers Max Verstappen, Lando Norris and Charles Leclerc.
$72.2 million. That's the combined prize-money pool for Wimbledon, a 7% increase over the previous year, according to the tournament. What Time Are The Matches—and Where Will They Air
Anisimova, who upset top-ranked Aryna Sabalenka in the Wimbledon semifinals, will compete against Swiatek on Saturday. Their match is scheduled for 11 a.m. EDT on ESPN. Sinner, the world's top-ranked men's tennis player, will face Alcaraz in the Wimbledon final on Sunday, though their matchup has not been scheduled for broadcast as of Friday afternoon. Forbes Valuaiton
Forbes ranks Alcaraz, who is seeking his third-straight Wimbledon title, the world's highest-paid tennis player with a combined $42.3 million in earnings on and off the court. Swiatek ranks fourth with $26.7 million in earnings, followed by Sinner, who earned a combined $26.6 million. Further Reading Forbes Coco Gauff's $2.9 Million French Open Prize Nearly Halved After Taxes By Ty Roush Forbes Why Novak Djokovic And Other Top Tennis Stars Call Monaco Home By Justin Birnbaum