For some athletes, winning an Olympic medal comes with a cash prize
For some athletes, winning an Olympic medal comes with a cash prize
Winning a medal at the Olympics brings prestige, adulation, and — in some cases — a cash bonus. Many countries will pay their athletes a prize if they earn a spot on the podium.
Hong Kong offers some of the biggest gold medal rewards: around $750,000 each. Here in the U.S., athletes get nearly $38,000 per gold medal, though less for silver or bronze.
When Simone Biles and Katie Ledecky cash the checks for their growing haul of medals, it’s not the tax payers who foot the bill, according to Andrew Zimbalist, an economist at Smith College.
“In the United States, our Olympic movement is funded privately,” he said. “It’s the only country in the world where the government does not fund it.”
The U.S. Olympic and Paralympic Committee relies on commercial partners and donations. Still, thanks to an act of Congress, athletes can enjoy those bonuses tax-free.
That might not be totally fair, argues Jon Gruber, an economist at MIT.
“You go to work, you work your butt off at a gas station 60 hours a week to make your $38,000. You are paying taxes on that, whereas the person who happened to win the gold at the Olympics does not,” he said.
Winning gold probably brings more than $38,000 worth of benefit to athletes, even in less lucrative sports, said Gruber. Because it sets them up for sponsorships, motivational speaking, and “it’s probably a great entree in a job interview.”
Best not to wear a swimsuit to the interview though.
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