Such poise, such a great game... Coco Gauff continues to amaze at Wimbledon.
From Forbes magazine...
Cori “Coco” Gauff has captured the hearts of the tennis world over the last week with her impressive wins over Venus Williams, Magdalena Rybarikova and Polona Hercog. And she won another three matches just to qualify for the tournament. Her power, poise and maturity have commentators and other players predicting a limitless future for this budding star.
Prior to Wimbledon, Gauff had made $61,101 on the court in 2019. She will more than triple that in London. Entering Monday’s match with seven seed and former world number one, Simona Halep, Gauff has earned £176,875 between singles and mixed-doubles, or about $223,500.
Off the court Gauff has a set of lucrative endorsement deals from New Balance, Head and Barilla. According to Forbes’ Kurt Badenhausen, Gauff will make $1,000,000 in retainers off these deals in 2019, a staggering amount for a fifteen-year-old.
But the downside of success is always taxes. Gauff is about to learn what tennis players and golfers around the world oftentimes find shocking when they play in the UK. Her Majesty’s Revenue and Customs (HMRC), the UK’s version of the IRS, take a hefty bite out of Gauff’s winnings.
The UK’s tax maximum rate is 45%, which does not seem that much higher than the US’s 37%. However, it takes far less income to hit the higher brackets than it does here. The first £37,500 ($47,400) of Gauff’s income will be taxed at 20%. Her effective rate on that income in the US would be 13.26%. Income over £37,500 is taxed at 40% and any income over £150,000 (about $189,600) is taxed at 45%. Overall, her tournament winnings will be taxed in the UK at an effective rate of 36.52%, whereas her effective US rate on that income would only be 23.9%.