Nicolai Haugsted
Champions today, millions poorer tomorrow? Spain’s World Cup payout under threat.
Spain may still be basking in the glory of lifting the World Cup trophy, but the celebrations could soon come with an expensive surprise.
Despite securing football’s biggest prize after an extra-time victory over Argentina, a sizeable portion of the team’s prize money could reportedly end up in the hands of the U.S. tax authorities because the tournament was staged on American soil.
Luis de la Fuente’s side claimed their second World Cup title after Ferran Torres scored the decisive goal in extra time, sealing victory in a dramatic final.
Spain’s triumph earned the squad prize money worth around $51 million, but U.S. tax rules could significantly reduce the amount players ultimately receive due to Trump’s new tax code.
According to Fox, as much as 30 percent of those winnings may be subject to federal withholding tax because the income was earned in the United States.
President Donald Trump was present during the trophy ceremony as Spain captain Rodri lifted the World Cup, though the potential tax bill stems from U.S. law rather than any FIFA decision.
American law takes center stage
Under current U.S. tax regulations, payments made to nonresident foreign athletes are generally subject to a 30 percent federal withholding unless a specific exemption applies.
The issue has already drawn criticism from Republican Congressman Tim Burchett.
“I’m not a fan of it, but Americans have to do it.”
Burchett acknowledged that the same rules also apply to American athletes, arguing that visiting competitors are made aware of the regulations before competing in the United States.
Calls for change
While accepting that the law exists, Burchett questioned whether it sends the right message to international visitors.
“They made that money over here, I guess, but I don’t like all that. We want to encourage these people to come over here and spend their money, and then we take a big chunk of it.”
His comments come as attention continues to focus on the financial consequences of hosting major international sporting events in the United States.
Spain’s World Cup campaign also generated headlines beyond the football itself, with reports suggesting several Argentina players could face FIFA scrutiny over their conduct following both the semi-final and the final.
