6 Ways Olympians Can Earn a Living

6 Ways Olympians Can Earn a Living

Now that we are well into the summer, many persons (like myself) are looking forward to next week’s Summer Olympics in Tokyo, Japan, torches will be lit on Friday, July 23rd. 

There are and will be many interesting stories, and new stars will be born.  The USA Olympic trials have already had interesting stories, such as Simone Biles’s quest to be the most medaled athlete of all time.   As per The New York Times, the charismatic track and field sprinter Sha’Carri Richardson (the fastest U.S. woman) has been denied a spot on the 100-meter and 200-meter individual races, (and 100-meter relay team) because she smoked marijuana to cope with the death of her biological mother.  The athletes are tested for marijuana, which Sha’Carri was well aware of, and for which she apologized.  How does smoking pot help you run faster?  I would think it would slow you down!

Since USA professional athletes have been permitted to compete in the Olympics, there has 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 earns over $18,000 per year.  The following are some ways athletes are getting compensated:

  1. The USOC (United States Olympic Committee): Although the USOC takes in millions annually, they only compensate the athletes (based on 2018 data) $37,500 for gold, $22,500 for silver and $15,000 for bronze.  For US Olympians, gold medals come with a heavy tax bill on $38,100 of income per gold medal!  This covers both the $37,500 received plus the value of the actual gold estimated at about $600.
  2. Corporate Sponsorship: United States corporations spend millions sponsoring “the team” which is why athletes are wearing team logos.  In a typical Olympic Games, there are 15,000 athletes competing in 26 sports for only 1,000 medals, so it is difficult to get sponsorships.  This is different from endorsement deals.  Sponsorships (aside from endorsements) are usually the best way to get paid as training is time-consuming and expensive.
  3. Special Funds: USA swimming pulls in over $100 million per year (from fees from 300,000 members) and gives a $3,000 per month stipend only to swimmers who rank in the top 16.  This is called an APA (Athlete Partnership Agreement).  This money is not “Free” as athletes are required to make public appearances, attend charity events and banquets, etc.
  4. Government:  In some countries (like Cuba for example) the government takes care of Olympic medalists for life.  A client of mine does business in Cuba and gave me some inside information.  If the athlete earns a medal (can be a bronze or silver in addition to gold) in any sport, the government takes care of them financially for life.  However, he told me about a Cuban boxer he met who finished 4th and is now flat broke.
  5. 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.
  6. Large Corporate Partnerships:  Some large US corporations partner with US athletes allowing them to work part-time while training.

It is clear in the USA that Olympians are doing it for the “love of the sport!”  There is a bill pending that would eliminate taxation on income received by Olympians.  This would greatly benefit the next Michael Phelps, who holds the record for the most medals won by ANY athlete (28) including 23 gold medals and 13 individual golds.   Simone Biles would be happy as well as she holds the gymnastics record with the most World medals (25) and gold medals (19), hopefully with more to come!

Times are changing in amateur sports, as there was just an NCAA (National Collegiate Athletic Association) rule change (after a unanimous Supreme Court Ruling) this month that the NCAA must provide compensation to athletes for “education-related” expenses, like paid internships and study abroad.  The lines between sports and money are clearly blurred!  One thing we can agree on is Let’s Go U.S.A.!