Why the IRS Wants a Cut of Spain's $50 Million World Cup Prize
Spain's historic 2026 World Cup win came with a hefty prize, and now the country could be handing a significant chunk of it over to the IRS.
Spain earned FIFA's record $50 million winner's prize after beating Argentina 1-0 in extra time in Sunday's final. Argentina, as runner-up, took home $33 million, while England collected $29 million for finishing third. But because this year's tournament was co-hosted by the United States, part of that prize money falls under U.S. tax rules, and reports suggest Spain's total tax bill could reach around $44 million before any treaty relief is applied.
Why the U.S. Gets a Cut
Money earned from games played on American soil is generally considered taxable income under U.S. law. Since the World Cup was jointly hosted by the United States, Canada and Mexico, income tied specifically to matches played in the U.S. can be subject to American taxation, even for non-American teams and players.
That means the IRS isn't just eyeing Spain's federation. The rule can extend to players, coaches, referees, medical staff and support personnel who earned money connected to games played on U.S. soil. Player earnings are also more complicated than a simple prize split, since they come through a mix of salaries, bonuses, sponsorships and commercial appearances, all of which can be taxed differently. With squads made up of players from dozens of countries, each with their own tax situations, working out exactly what's owed becomes a genuinely complex undertaking.
Ahead of the tournament, the IRS worked with Canadian and Mexican tax authorities to establish how World Cup-related income would be divided and taxed across the three host countries, and officials released guidance explaining how the process would work for teams and individuals earning money in the U.S.
A Break From FIFA's Usual Playbook
The tax situation marks a notable departure from how FIFA has historically operated. Since the 2010 World Cup, the organization has regularly negotiated broad tax exemptions with host nations covering both FIFA itself and the competing teams. South Africa, Brazil, Russia and Qatar all granted this kind of relief in previous tournaments.
This year's edition, spread across three countries for the first time, has broken from that pattern in several ways, and the tax bill facing Spain is just the latest example of how different this World Cup has been from previous ones.
For now, the exact final number Spain will owe remains unclear, and any applicable tax treaties between Spain and the U.S. could reduce the total. But even with relief factored in, Spain's record-breaking prize money is set to look considerably smaller by the time it reaches the country's federation.
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