Since USA professional athletes have been permitted to compete in the Olympics there’s been a misconception that athletes get rich from competing. In some countries yes, however, in the USA only 50% of our track & field athletes ranked in the top 10 earn over $15,000/year. The following are some ways athletes are getting compensated:
- The USOC (United States Olympic Committee): Although the USOC takes in millions annually, they only pay the athletes $25,000 for gold, $15,000 for silver and $10,000 for bronze.
For US Olympians, gold medals come with a heavy tax bill on $25,564 of income/gold medal. This covers both the $25,000 received plus the value of the actual gold estimated at $564. - Corporate sponsorship: U.S. corps spend millions sponsoring “the team” which is why athletes are wearing logos. The catch here is you have to win and be famous. There are 15,000 athletes competing in 26 sports for only 1,000 medals so it’s difficult to get sponsorships and easy (Ryan Lochte) to lose them. This is different from endorsement deals.
- Special funds: USA swimming pulls in over $100million per year (from 300,000 membership fees) and gives a $3,000/month stipend only to swimmers who rank in the top 16.
- Government: In some countries (like Cuba) the government takes care of Olympic medalists for life. Not so here in the USA.
- Foundations and private funding: In wrestling for example, LivingTheDreamMedalFund.com raises money that pays out $250,000, $50,000 and $25,000 for gold, silver and bronze medals respectively.
- Large Corporate Partnerships: Some large US corporations partner with US athletes allowing them to work part-time while training.
It’s clear here in the USA that Olympians are doing it for the “love of sport”. There’s a bill pending house approval (Senator Schumer introduced it and it has passed the Senate) that would eliminate taxation on income received by Olympians. This would greatly benefit a Simone Biles for example, who will owe over $40,000 in taxes for her 5 medals won.