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Why Spain may lose 30% of World Cup Prize Money

by Honesty Victor
July 22, 2026
Reading Time: 3 mins read
Why Spain may lose 30% of World Cup Prize Money
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Spain could lose as much as $15 million from its $50m prize money for winning the 2026 FIFA World Cup if the full 30 per cent United States federal tax withholding is applied.

The Spanish national team, La Roja, defeated Argentina 1-0 in the final to become the 2026 world champions and claim the tournament’s top prize.

However, the financial reward could be significantly reduced by US tax rules because the tournament was partly hosted in the United States.

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The potential tax burden has already attracted criticism from some American lawmakers, who described the possible deduction as excessive and warned that it could discourage international athletes and visitors from spending money in the country.

Republican Congressman Tim Burchett of Tennessee criticised the potential tax deduction in an interview with Fox News.

“I think it’s a rip-off,” Burchett said.

The lawmaker, however, acknowledged that foreign athletes competing in the United States are subject to tax rules similar to those faced by American professional athletes.

“I’m not a fan of it, but Americans have to do it. American professional athletes do it, so they knew that when they came over here,” he said.

Under US tax laws, income earned from activities carried out in the country is generally subject to federal taxation.

Certain payments made to non-resident foreign athletes are also generally subject to a 30 per cent federal withholding tax, although the rate may be reduced under a tax treaty or where another exemption applies.

If the full 30 per cent rate applies to Spain’s $50m prize, the deduction could amount to $15m.

However, the final tax liability could depend on the structure of the payment, the recipient and any applicable tax treaty or exemption.

‘It’s wrong,’ another lawmaker says

Democratic Congressman Jonathan Jackson of Illinois also criticised the potential tax burden on Spain’s World Cup winnings.

“It’s wrong, and that kind of highlights something bigger,” Jackson said.

He used the issue to raise concerns about what he described as weaknesses in the broader US tax system.

According to Jackson, the burden of taxation should not fall heavily on workers while corporations benefit from tax loopholes.

“They should be paying the taxes as opposed to having tax loopholes,” Jackson said.

“The people, the laborers that are working, they should not have to pay 30% of their income on taxes.”

Jackson described the situation as a “classic example of what’s wrong with our taxation system.”

Burchett also argued that the potential tax burden could send the wrong message as the United States prepares to host more major international sporting events.

The congressman said the country should be encouraging foreign athletes, visitors and international participants to spend money in the US rather than imposing what he described as heavy tax obligations on their earnings.

“I’m not a big fan of the IRS,” Burchett said.

“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.

“We’ve got to get a better tax system.”

The 2026 World Cup is being hosted across the United States, Canada and Mexico, with several matches taking place on American soil.

The tax issue could therefore affect teams and players who earned income from matches or other tournament-related activities conducted in the United States.

World Cup Prize Pool Hits $871m

The 2026 FIFA World Cup has a total prize pool of $871m, with $655m of the amount tied to teams’ performances throughout the competition.

According to the report, all participating teams that played matches in the United States could have some portion of their tournament-related earnings subjected to US taxation, even if their only payment was a participation fee.

This means the tax implications could extend beyond Spain, the eventual champions, to other teams that played matches in the US during the tournament.

Republican Congressman Burgess Owens of Utah also agreed that a possible 30 per cent tax deduction from Spain’s prize money was “too much.”

However, the former NFL player used the opportunity to highlight what he described as the positive impact of hosting the World Cup in the United States.

Owens said the tournament had changed his personal view of football, a sport he previously had little interest in.

“I have such an appreciation for soccer now,” Owens told Fox News Digital.

“I think it’s going to be a game changer for so many of our kids. And, so, I want to congratulate the president, everyone who made this happen.

“It is what it is here, unfortunately, in our country of taxes.”

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