Jannik Sinner of Italy and Carlos Alcaraz of Spain will compete in the Wimbledon final on July 16, 2023, with a total prize pool of $4 million at stake. They join American Amanda Anisimova and Poland’s Iga Swiatek, who will face off in the women’s final on July 15, 2023. While the winners will be celebrated for their achievements, tax implications mean their actual earnings could be significantly reduced.
According to tax analysts, the total tax burden on these winnings could exceed $2.9 million. The U.K. imposes taxes on both the prize money from Wimbledon and endorsement earnings related to the tournament. Athletes face an initial withholding tax of 20%, which can rise up to 45% after accounting for expenses. Andreas Bosse, an international tax legal consultant based in Monaco, emphasized the impact of these taxes on athletes’ earnings.
The grand prize of £3 million (approximately $4.05 million) is expected to be taxed at an effective rate of 36.52%, as noted by Sean Packard, tax director at OFS Wealth. This could reduce the winners’ take-home amount to around $2.5 million. Runners-up like Anisimova and Swiatek, who may receive $2 million, could see their earnings fall by over $700,000, leaving them with approximately $1.2 million after taxes.
In addition to U.K. taxes, players may be subject to tax obligations in their home countries. Anisimova, for instance, may face self-employment taxes in the U.S., further diminishing her earnings. Alcaraz is likely to encounter Spain’s top income tax rate of 47%, although he would receive a tax credit for the taxes paid in the U.K. This means his expected winnings could drop to about $2.1 million.
Swiatek, on the other hand, may need to pay an additional 4% tax in Poland, reducing her potential winnings by either $162,000 as champion or $80,000 as runner-up. In contrast, Sinner will not face additional tax liabilities outside the U.K., as Monaco is his primary residence.
The total prize money pool for Wimbledon stands at $72.2 million, reflecting a 7% increase from the previous year. Anisimova, who secured a surprising victory over top-ranked Aryna Sabalenka in the semifinals, is set to face Swiatek in the women’s final at 11 a.m. EDT on ESPN. Sinner, currently ranked as the world’s top male tennis player, will meet Alcaraz in the men’s final, although broadcast details for their matchup remain unconfirmed.
As the sport’s highest-paid player, Alcaraz boasts combined earnings of $42.3 million, followed closely by Swiatek with $26.7 million and Sinner at $26.6 million, according to Forbes. As these athletes strive for victory on the prestigious grass courts of Wimbledon, the looming tax implications serve as a stark reminder of the financial realities behind their celebrated achievements.
