SPAIN WON A REPORTED $50M WORLD CUP PRIZE, IRS MAY GET A CUT
Spain’s World Cup prize money, a reported $50 million, may come with a cut for the IRS.
Spain beat Argentina 1-0 in the World Cup final in New Jersey on July 19, 2026. The match went to extra time, and Yahoo Finance identified Ferran Torres as the scorer. FIFA awarded the champions a reported $50 million first-place prize.
Then came the tax angle. MarketWatch reported that U.S.-source income from activity performed in the United States is generally subject to U.S. tax, and that sports and tax professionals believe the IRS can tax relevant income earned there.
“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.
Raiola said the issue can apply to coaches, staff and referees, not only players.
Mina Capouet, a senior legal analyst at Wolters Kluwer, was quoted by Accounting Today on the player side: “At the individual player level, there is no exemption.” Players do not get the same exemption treatment as the federation, she said.
How the IRS math works
Fortune reported that the IRS World Cup tax playbook treats international athletes’ income as taxable when it is “connected to services performed in the United States.”
The tournament was co-hosted by the United States, Canada and Mexico. Fortune reported that the tax is figured by comparing the matches a team played in each host country with its matches across the whole tournament.
TheStreet reported that the IRS default is 30% withholding on gross U.S.-sourced income, subject to treaty relief and exemptions. It estimated that 30% withholding on the U.S.-sourced portion of Spain’s prize would come to about $13.4 million.
That is withholding, not necessarily the final bill, TheStreet reported. Recipients can file returns to reconcile what was withheld.
Treaty relief and state taxes
Spain has an edge over its final opponent. MarketWatch reported that the United States has a tax treaty with Spain but not Argentina, citing an IRS database.
Yahoo Finance reported that Spanish players may seek treaty relief if they file the required form and have a U.S. taxpayer ID. Without that, foreign athletes’ U.S. earnings generally face 30% federal withholding before any adjustments.
State “jock taxes” may also apply to income earned in the states where the players competed, Fortune reported. A tax expert identified as Koenigsberg explained the practical effect of foreign tax credits: “Ultimately, you end up paying the higher of the two countries’ tax.”
Money has been a World Cup storyline off the pitch too: some World Cup fans skipped tips, so restaurants added 20%.
Who gets the prize money
FIFA did not pay the players or staff directly. Yahoo Finance reported that FIFA paid the prize to Spain’s football federation, which decides how much to distribute as player and staff bonuses.
