World Cup Champions Won Big. So Did The IRS.
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World Cup Champions Won Big. So Did The IRS.

Spain’s victory in the 2026 FIFA World Cup Final came with a hefty payout for both the country’s soccer federation and the IRS. Following the Spaniards’ 1-0 win in extra time against Argentina, the team won $50 million of the $655 million prize pool FIFA will split among the 48 competing countries. The country’s soccer federation will then divvy up the prize money among the roster based on its own rules and regulations. Any money made on American soil is taxable, so the tournament has also become a huge event for the IRS.  Robert Raiola, director of the sports and entertainment group at the tax advisory firm PKF O’Connor Davies, spoke to MarketWatch about how the IRS always wins regardless of the outcome of the final match. “It doesn’t make a difference who wins the game. The IRS will get a piece.” Raiola added that coaches, team staff, referees, and players from all participating teams will be taxed in some capacity, though not every member of the organization will be taxed the same. Decisions will be made depending on who they are playing for and where they currently reside. Both factors could affect how they are taxed. “Even within the same team, there may be different tax answers for different players,” Christopher Hall of PKF O’Connor Davies said. “You have to go through and look [at] your entire entourage.” International tax treaties then come into effect, as players may be exempt based on their country’s tax treaty with the United States. Team staff, on the other hand, are not always protected in the same manner. The tax complexities surrounding the World Cup cannot be overstated. Rob Fagan, a senior manager at KPMG’s Washington National Tax, ranked the tournament as an “8 out of 10” on the tax-complexity scale. To help individuals navigate these issues, the IRS’s National Taxpayer Advocate gave a “tax playbook” for foreigners that encouraged professional help throughout the process. The United States also reached an agreement with the other host countries to prevent double taxation. In June, before the tournament kicked off, the IRS released a statement explaining how the Canada Revenue Agency and Mexico’s Servicio de Administración Tributaria came to a consensus on how compensation and income will be allocated.