Red Cards Can Cost More Than A Match
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World Cup Has All Kinds of Penalties
Beyond Red Cards, There are Many Monetary Fines
From World Cup red card fines to state and federal taxes, the surprise take home from this match might be a bill. Athletes from countries across the globe competing in the World Cup may be going home with an unwelcome prize this year: a hefty tax bill from the United States.
Red cards can also carry monetary sanctions. The FIFA Disciplinary Committee issues these fines, which range from $10,000 for cautions to more than $40,000 for severe violations. Although these fines do not create separate fees, players may still face strict income tax obligations. Foreign players are subject to standard U.S. tax rates—up to 30%—with no exemption for World Cup income.
While FIFA rules mandate an automatic one-match suspension following an ejection, the FIFA Disciplinary Committee can defer bans under special provisions. For example, after USMNT forward Folarin Balogun received a red card for a tackle and subsequent celebration, FIFA fined him $40,000 but delayed his suspension by a year.
Individual players are taxed on their match earnings and bonuses by the federal government at a flat rate of up to 30%. State taxes also apply based on where matches or training sessions take place, regardless of double-tax treaty exemptions.
There are also host fines and surcharges. For example, state and local venues (e.g., New Jersey) have debated implementing temporary “World Cup taxes” affecting local services and accommodations rather than directly taxing a player’s red card. Lastly, Red Card fines can also be considered a “team liability”. National federations like U.S. Soccer can be declared jointly liable to pay these disciplinary fines on behalf of their players.
Even Without a Red Card Players Will Have to Pay
Athletes from around the world may they be hit by both U.S. taxes and state taxes as well, especially in states like New Jersey that have a state income tax. Coaches, team employees, media professionals and businesses that provide services could also be on the hook for taxes, according to a “Tax Playbook for Foreign Participants in the 2026 FIFA World Cup” from the Taxpayer Advocate Service. As it turns out, even those with a short stay in the U.S. can still be subject to taxes on the income they earn from activities performed within U.S. borders.
Typically for the World Cup, the host government passes legislation to implement tax exemptions that apply to FIFA, the broadcasters, sponsors and subsidiaries. Mexico and Canada, which host the summer World Cup, granted tax exemptions for FIFA and related associations but the U.S failed to provide them. In the end, players and companies may be facing taxes from both the U.S. and the states hosting the games. Understanding these rules can help you avoid unexpected tax consequences and ensure you meet all applicable filing and reporting requirements. Contact our firm at info@madonia.com or (312) 578-9300 if you have additional tax questions.