Polish tennis star Iga Swiatek won the womens’ title at Wimbledon on Saturday, beating out American Amanda Anisimova and securing a US$4 million prize before Jannik Sinner and Carlos Alcaraz play Sunday—though tax analysts told Forbes that Świątek and the male champion’s winnings will be cut nearly in half after paying required taxes.
Key Takeaways
- 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), awarded to both the women’s and men’s champions, 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.
- Swiatek will likely also pay an additional 4% tax in Poland, reducing her championship winnings by an additional $162,000.
- 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.
- The U.S. requires additional tax payments, including self-employment levies or an additional Medicare surtax, Packard said, which could lower Anisimova’s prize as the womens’ runner-up.
News Peg
Swiatek beat Anisimova in just 57 minutes during Saturday’s match, winning 6-0 and 6-0 to secure her first Wimbledon title. The match marked the first time in the Open Era of tennis matches—since 1911—that a woman won a singles title at Wimbledon without missing a single game, and is the first time since 1968 that it’s happened at any Grand Slam match.
What Taxes Could Carlos Alcaraz Pay?
Alcaraz will likely face Spain’s highest income tax rate of 47% for any earnings he takes home Sunday, 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, should he win. Spain also incurs a wealth tax for its wealthiest residents, though it’s not immediately clear what additional rate Alcaraz would pay.
What Taxes Could Jannik Sinner Pay?
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.
Big Number
$72.2 million. That’s the combined prize-money pool for Wimbledon, a 7% increase over the previous year, according to the tournament.
How to Watch the Wimbledon Men’s Final in Australia
Jannik Sinner will face Carlos Alcaraz in the Wimbledon men’s final on Sunday night, with live coverage from 1:00am AEST on Monday on Channel 9 and Stan Sport.
Forbes Valuation
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.
This article was originally published on forbes.com and all figures are in USD.
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