If you’re anything like us, you searched the value of gold medals, freshened up on Simone Biles’ achievements, and said, “Bonjour!” more than ever in the last month as you competitively watched the 2024 Summer Olympics. But if you’re wondering about the financial outcomes for gold-medalist Olympic winnings, you’re in the right spot.
Do gold medalists get paid for winnings?
The answer has technically been no. The International Olympic Committee does not award prize money, but it allows other national or international organizations or entities to incentivize and award athletes for their performances.
In a historic decision this year, the World Athletics, the international governing body of track and field, announced a $50,000 USD reward for each track and field gold medalist across 48 athletic events in the Paris games, a total of a $2.4 million in Olympic winnings, the first of its kind. Prize money will be tiered in future games, with silver and bronze winners receiving money in the LA 2028 summer games. All gold medal relay teams will split the $50,000 prize amongst their representatives.
Some countries may also award winners additional prize money. The US Olympic and Paralympic Committee awards winners $37,500 for each gold medal, $22,500 for silver medals, and $15,000 for bronze medals. Countries like Hong Kong and Singapore are amongst the top offers for Olympic medalists with six-figure deals awaiting gold medalists.
Are the winnings taxable?
Prior to 2016, the answer was yes, due to the “Victory Tax.” However, the United States Appreciation for Olympians and Paralympians Act of 2016 amended the “Victory Tax” to exclude winnings and any prizes or awards from gross income. This means that some athletes will not pay taxes on their medals or earnings. However, there is an exception.
Olympic athletes and professional athletes who earn $1 million or more annually are subject to taxes on their medals and earnings. This includes athletes that peak over $1 million through endorsements. The high taxable income puts athletes in the highest tax bracket at 37%. In addition to endorsements and other means of taxable income, athletes will also pay 37% on their Olympic winnings and awards.
Sports that feature prize pools, like golf, can take deductions for expenses.
How much are the medals worth?
As of 2022, gold medals were required to be a minimum of 92.5% silver and plated with about six grams of pure gold. This equates to about $750 in gold and silver contents.
Medals are often auctioned by athletes themselves or their families. Earlier this year, Bob Beamon, the long jump world record setter at the 1968 Mexico City Olympics, sold his gold medal for $441,000. The highest bid for the medal was $350,000, with a premium fee of 26%.
Bill Russell’s basketball gold medal sold for $587,5000 in 2021. One of Jesse Owens’ four gold medals from the 1936 Berlin Olympic Games sold for $1.4 million in 2013, setting the record auction price for a gold medal.
We’re already ready to tune in and cheer on Team USA in 2028! À la prochaine!
