First of all, holster your comments if you quit watching the NFL. I get it. I’m asking the question because the NFL is running commercials about how many fans they have in Europe. Undoubtedly, preparing to expand across the pond. So…are the teams that play in Europe taxed at that Country’s tax rate?
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Theoretically, yes.
But professional sports teams are a money laundering and tax evasion smorgasbord, even more than expensive art. Everything from gov't subsidies for stadiums, marketing and sponsorships, to player trades have been wrapped in repeated scandals for decades. Asking about their team tax accounting is like asking about wrestling rules in the WWF.
I’m assuming it will be like the NBA,MLB They get taxed and paid for each game in that country/state. So they will make more money playing in Florida or Texas compared to New York or California. But they get paid weekly I believe
Also, some cities have some kind of a 'professional tax' or whatever it's called where players on visiting teams have to pay a tax to play there. It's all handled by the team behind the scenes presumably.
I remember watching an NHL game something like 15 years ago and my team was playing in Nashville and the tv guys were commenting on how one of the players playing on a minimum contract actually lost money by playing that game because of the tax.
Thank you🐸
That's a can of tax law worms.
From Chat GPT:
Q: Do NFL players get taxed by a foreign country if they play a game overseas? For instance, if the Miami Dolphins play the Cleveland Browns in th U.K., would the players, coaches, staff, and teams have to pay any U.K. income taxes?
A: Short answer: Yes — non‑UK resident players, coaches and other paid persons performing in the UK can face UK tax on payments tied to the UK appearance (and a prorated share of some worldwide endorsement/sponsorship income). Payers may be required to withhold tax at source.
Key points - Withholding: UK payers must usually deduct withholding tax (FEU rules) at the basic rate (commonly 20%) from payments to non‑UK entertainers/sportspeople if total payments exceed the personal allowance. This can apply even if payment goes to a third‑party company.
- Taxable income: Appearance fees, match/prize bonuses, and a UK‑apportioned portion of global endorsement/sponsorship can be taxable in the UK. HMRC uses methods (e.g., relevant performance days) to apportion endorsement income.
- Final liability: If UK taxable income exceeds allowances/bands, the individual may need to file a UK self‑assessment return and pay additional tax (20/40/45% bands). Expenses can affect final tax.
- Relief/double tax: US (or other home‑country) tax credits/double tax treaty relief often reduces double taxation; typically the home country allows credit for UK tax paid.
- Teams/employers/staff: Employees temporarily working in the UK can be treated differently depending on employment status, payroll arrangements and treaties — employers may have withholding, reporting and NIC considerations. Clubs/promoters can be required to register with HMRC’s Foreign Entertainers Unit.
- Practical outcome for an NFL London game: In practice the hosting/promoting organisation and clubs handle FEU registration and withholding for appearance fees and related payments. Top-line salaries paid by a US employer that are not specifically tied to the UK appearance may often remain taxable in the US, but UK tax can apply to appearance‑related payments and apportioned endorsement income; affected individuals may need to file UK returns and claim foreign tax credits at home.
If you want, I can:
- Summarise the specific HMRC FEU rules and withholding rates, or
- Outline likely practical steps for an NFL team (payroll, registration, treaty relief, sample checklist).
However, it wouldn't surprise me if the U.S. pro sports leagues have certain agreements with foreign countries that would mitigate any taxes that would need to be paid by the players, coaches, or staff.
If anyone wants to go deeper, feel free. They make millions of dollars a year and can afford to hire lawyers and tax pros to deal with this. I don't have that luxury, so I've never really considered the question.
Holy shit fren - thank you🍀💚🐸