There are a few rewards for Olympic athletes that put all of the time, effort, and money into becoming the greatest in the world at his or her event. First is the honor to represent ones country in the biggest sporting event in the world,
there are also sponsorships available for the top few who are well recognized. For those who are good enough to win an Olympic gold medal there is also a USD 25,000 bonus to go along with a hunk of gold, USD 15,000 for silver and USD 10,000 for bronze medal winners. However, there is around a 39% tax on those bonuses. So a gold medalist would pay around USD 9,900. Those who win silver pay USD 5,940 and bronze winners pay USD 3,690.[i]
Seeing these numbers for the first time can leave some puzzled, frustrated, or even angry! Michael Phelps will pay around USD 55,000 for his bonuses. Simone Biles will likely pay around USD 43,000 when she comes home. For those of you that are outraged just remember what these top athletes make a year in sponsors’ money. Michael
Phelps’ net worth is somewhere in the ballpark of USD 55 million, Simone Biles’ net worth is about USD 2.1 million. So in the grand scheme of things the couple thousand dollars that Mr. Phelps makes in bonuses is pocket change.[ii] Below is a pie chart of Michael Phelps’ earnings separating sponsor money from competition bonuses.