The U.S.’s Scottie Scheffler, the world’s No. 1 ranked men’s golfer, won the 2022 Masters on Sunday, defeating Northern Ireland’s Rory McIlroy by three strokes after shooting a 10-under par 278. Scheffler is also a “winner” because the Masters upped the purse and the first place prize for 2022. Both jumped 30%, $11.5 million to $15 million, and $2.07 million to $2.7 million, respectively.
More than ever, the iconic green jack jacket has pockets stuffed with green. But the 25-year-old graduate of the University of Texas, who reportedly also makes his home in the income-tax free state, will also face a some new income liabilities as a result of his success.
Scheffler will pay the highest federal income rate, 37%, along with the top Georgia rate, 5.75%. In other words, Scheffler will pay a 42.75% income tax rate on his prize. He will still “take home” or net a seven-figure payout, but it will be brought down, we project, to $1,546,000. This figure reflects an approximate payment of $999,000 to the Internal Revenue Service and an approximate payment of $155,000 to the Georgia Department of Revenue.
Not too shabby. But not $2.7 million, either.
This calculation, of course, only takes into consideration what is publicly known. Scheffler and his accountant might be able to increase the net through deductions. Caddie’s typically get $2,000 per week and 10% of the check for a win, while renting a house in Augusta for the week, which most players do, can easily surpass $10,000. Other deductible expenses include tips, air travel, hotel, meals, swing coach fees and agent fees.
Scheffler, who last month signed a multiyear deal with TaylorMade Golf, also stands to gain on the endorsement front from an enhanced profile and greater public recognition.
But like with all earnings and prizes in sports, “gross” and “net” mean two very different things.
