Olympics Prize Money
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grandverve
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Olympics Prize Money
The financial incentives for Central Asian Olympians
By Feruza Rakhmonova
BBC Uzbek Central Asian countries are unlikely to feature at the top of the Olympic medals table, but it won't be for lack of financial incentives.
When Kazakhstan's Zulfiya Chinshanlo took Olympic gold in the women's 53kg weight lifting event on the second day of the games, she was only half joking when she mentioned the cash bonus that may be in store for her.
The 19-year-old had just been congratulated by the country's President Nursultan Nazarbayev. "I won't tell you how much money he will give me," she said. "I am afraid I will be robbed."
Joking aside, cash prizes for Central Asia's medal winning athletes are a serious matter.
In fact, the bonus paid by Kazakh Olympic officials for a gold medal is no secret. It's $250,000 (£159,000) - 10 times the amount a US athlete would get if he or she captures top spot.
Riches and recognition
Such generosity reflects the importance attached by some former Soviet republics to achieving sporting glory under their own flags, some 20 years after their countries broke away from the crumbling USSR.
Kazakhstan's wealth is helping in attempts to raise its international reputation
Kazakhstan in particular craves international recognition. Its new capital Astana boasts a wealth of extravagant architecture, including the giant Pyramid of Peace, and the huge shopping and entertainment complex in the shape of a tent, both of which have been designed by British architects Foster and Partners.
With plenty of oil, gas and precious metal reserves, the country can afford to bankroll its international PR efforts.
But even poorer neighbours have made big promises to their Olympic athletes.
Kyrgyzstan - with a GDP of significantly less than a 10th of its mighty neighbour - says it will reward a gold medal with $200,000 (£128,000). Then again, at Beijing none of its athletes achieved that feat.
OLYMPIC INCENTIVES
•Singapore: Athletes are being offered SIN$1m ($800,000/£511,000) for a gold
•Australia: AU$20,000 ($21,000/£13,500) for a gold, plus their face on a postage stamp
•Russia: Athletes will receive $135,000 (£85,000) for a gold
•UK: No money - but their face on a stamp
Source: Reuters
But Murat Saralinov, the head of the Kyrgyz National Olympic Committee, has said the bonus could make a difference.
"Around three billion people watch the Olympic Games in London. So it's a big event," Saralinov said when the incentives were announced. "We would like to support our athletes and I believe it will give them a huge stimulus. We think to win two or three medals would be very good for us."
Uzbekistan, also endowed with oil and gas reserves, will pay $150,000 (£96,000) for a gold medal, while Tajikistan, the region's poorest country, has been more modest with a $63,000 (£40,000) dollar gold bonus.
Private encouragement
But there's a big difference in what the prize money will get you in the different countries.
In Kyrgyzstan, the gold medal bonus would get you a very comfortable, if not luxurious house. In metropolitan Kazakhstan or Uzbekistan, the cash would just about get you a modest flat.
Whatever the actual value, most Central Asian countries outstrip the incentives offered by the former Soviet Union's lead nation Russia.
And in some former republics, patriotic individuals have raised the stakes even higher. One leading businessmen in Armenia has offered to top up the Olympic federations cash offer by another $700,000 (£448,000).
During Soviet times, incentives were both ideological as well as material. Successful athletes were awarded prestigious titles such as the 'Master of Sports' ranks, complete with badge. But they could also expect privileges such as better salaries or a flat.
The Soviet sporting structure may have passed into history, but the incentive system has adapted to more capitalist times.
http://www.bbc.co.uk/sport/0/olympics/19078502
By Feruza Rakhmonova
BBC Uzbek Central Asian countries are unlikely to feature at the top of the Olympic medals table, but it won't be for lack of financial incentives.
When Kazakhstan's Zulfiya Chinshanlo took Olympic gold in the women's 53kg weight lifting event on the second day of the games, she was only half joking when she mentioned the cash bonus that may be in store for her.
The 19-year-old had just been congratulated by the country's President Nursultan Nazarbayev. "I won't tell you how much money he will give me," she said. "I am afraid I will be robbed."
Joking aside, cash prizes for Central Asia's medal winning athletes are a serious matter.
In fact, the bonus paid by Kazakh Olympic officials for a gold medal is no secret. It's $250,000 (£159,000) - 10 times the amount a US athlete would get if he or she captures top spot.
Riches and recognition
Such generosity reflects the importance attached by some former Soviet republics to achieving sporting glory under their own flags, some 20 years after their countries broke away from the crumbling USSR.
Kazakhstan's wealth is helping in attempts to raise its international reputation
Kazakhstan in particular craves international recognition. Its new capital Astana boasts a wealth of extravagant architecture, including the giant Pyramid of Peace, and the huge shopping and entertainment complex in the shape of a tent, both of which have been designed by British architects Foster and Partners.
With plenty of oil, gas and precious metal reserves, the country can afford to bankroll its international PR efforts.
But even poorer neighbours have made big promises to their Olympic athletes.
Kyrgyzstan - with a GDP of significantly less than a 10th of its mighty neighbour - says it will reward a gold medal with $200,000 (£128,000). Then again, at Beijing none of its athletes achieved that feat.
OLYMPIC INCENTIVES
•Singapore: Athletes are being offered SIN$1m ($800,000/£511,000) for a gold
•Australia: AU$20,000 ($21,000/£13,500) for a gold, plus their face on a postage stamp
•Russia: Athletes will receive $135,000 (£85,000) for a gold
•UK: No money - but their face on a stamp
Source: Reuters
But Murat Saralinov, the head of the Kyrgyz National Olympic Committee, has said the bonus could make a difference.
"Around three billion people watch the Olympic Games in London. So it's a big event," Saralinov said when the incentives were announced. "We would like to support our athletes and I believe it will give them a huge stimulus. We think to win two or three medals would be very good for us."
Uzbekistan, also endowed with oil and gas reserves, will pay $150,000 (£96,000) for a gold medal, while Tajikistan, the region's poorest country, has been more modest with a $63,000 (£40,000) dollar gold bonus.
Private encouragement
But there's a big difference in what the prize money will get you in the different countries.
In Kyrgyzstan, the gold medal bonus would get you a very comfortable, if not luxurious house. In metropolitan Kazakhstan or Uzbekistan, the cash would just about get you a modest flat.
Whatever the actual value, most Central Asian countries outstrip the incentives offered by the former Soviet Union's lead nation Russia.
And in some former republics, patriotic individuals have raised the stakes even higher. One leading businessmen in Armenia has offered to top up the Olympic federations cash offer by another $700,000 (£448,000).
During Soviet times, incentives were both ideological as well as material. Successful athletes were awarded prestigious titles such as the 'Master of Sports' ranks, complete with badge. But they could also expect privileges such as better salaries or a flat.
The Soviet sporting structure may have passed into history, but the incentive system has adapted to more capitalist times.
http://www.bbc.co.uk/sport/0/olympics/19078502
"THE GENTILITY OF A LION SHOULD NOT BE TAKEN AS COWARDICE"
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grandverve
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Re: Olympics Prize Money
Who, What, Why: Why are US athletes taxed on Olympic medal wins?
The sweet taste of Olympic victory for US swimmers Ryan Lochte (l) and Michael Phelps (r) Continue reading the main story
In today's Magazine7 days quiz
12 more British quirks in 212 words for 2012 visitors
Viewpoint: G4S and the echoes of the East India Company
Olympics 2012: The secrets behind national anthems
US medal-winning athletes at the Olympics have to pay tax on their prize money - something which is proving controversial in the US. But why are athletes from the US taxed when others are not?
The US is right up there in the medals table, and has produced some of the finest displays in the Olympics so far.
Michael Phelps has broken the record for most Olympic medals ever, and 16-year-old rising star Gabby Douglas has won the all-round gold in the gymnastics - the first African-American woman do so.
So the US is feeling pretty proud of its athletes right now. But not everyone is happy to hear that their Olympic medal-winning athletes are being taxed on their medal prize money.
Athletes are effectively being punished for their success, argues Florida Senator Marco Rubio, a Republican, who introduced a bill earlier this week that would eliminate tax on Olympic medals and prize money.
"Athletes representing our nation overseas in the Olympics shouldn't have to worry about an extra tax bill waiting for them back home," said Rubio.
This, he said, is an example of the "madness" of the US tax system, which he called a "complicated and burdensome mess".
Continue reading the main story
The answer
The US, unlike most countries, has a "worldwide" system of tax, which means that money earned abroad is liable for US tax
The US Olympic Committee awards prize money to its medal winners - $25,000 (£16,000) for gold, $15,000 (£10,000) for silver, and $10,000 (£6,000) for bronze.
This money is considered taxable income by the US Internal Revenue Service (IRS).
According to the advocacy group Americans for Tax Reform (ATR), an athlete on the highest rate of tax (35%), could face a tax bill of $8,750 (£5,600).
The value of the medals themselves could be subject to tax too, according to the ATR - adding a further $236 (£150), $135 (£85), and $2 (£1.20) respectively for gold, silver and bronze.
The Olympic example highlights what they regard as the underlying problem of the US' so-called "worldwide" tax model.
Continue reading the main story
Olympics coverage online
From the BBC:
London 2012: All Olympics news
Sport: Reports, reaction, news
Weather: UK five-day forecast
Official Olympic travel links:
Traffic and travel in London
Travel info for other Games locations
Traffic updates via Twitter @GAOTG
Under this system, earnings made by a US citizen abroad are liable for both local tax and US tax.
Most countries in the world have a "territorial" system of tax and apply that tax just once - in the country where it is earned.
With the Olympics taking place in London, the UK would be entitled to claim tax on prize money paid to visiting athletes, but has given a number of tax exemptions for competitors in the Olympics - including on any prize money.
That means that only athletes from countries with a worldwide tax system on individual income are liable for tax on their medals.
And there are only a handful of them in the world, says Daniel Mitchell, an expert on tax reform at the Cato Institute - citing the Philippines and Eritrea as other examples.
But with tax codes so notoriously complicated, unravelling which countries would apply this in the context of Olympic prize money is a tricky task, he says.
Mitchell is a critic of the worldwide system, saying it effectively amounts to "double taxation" and leaves the US both at a competitive disadvantage, and as a bullyboy, on the world stage.
Continue reading the main story
US medal money...
Gold - $25,000 (£16,000)
Silver - $15,000 (£10,000)
Bronze - $10,000 (£6,000)
"We are the 800lb (360kg) gorilla in the world economy, and we can bully other nations into helping enforce our bad tax law."
Tax laywer and blogger, Kelly Phillips Erb, also believes that the US tax system needs to be modified, and - most importantly - simplified.
The Rubio bill - by adding another exemption to the already complicated tax code - would only make matters worse, she says.
Congress is about to go off on a one-month recess, and with the Olympics already well underway, this is, says Erb, more about "political grand-standing" than anything else.
Not all athletes get prize money along with an Olympic medal - it depends what country you come from.
Continue reading the main story
...And around the world
How much for a gold medal at London 2012 Olympics:
Singapore - $800,000 (£515,000)
Kazakhstan - $250,000 (£160,000)
Kyrgyzstan - $200,000 (£130,000)
Uzbekistan - $150,000 (£95,000)
Russia - $135,000 (£90,000)
Tajikistan - $63,000 (£40,000)
US - $25,000 (£16,000)
Australia - $20,000 (£13,000) plus face on a stamp
UK - No money - but their face on a stamp
Sources: BBC Uzbek, Reuters
Money is not awarded by the International Olympic Committee. The decision whether to offer prize money is made by the national Olympic Committees in each individual country, who also set the sum.
UK medal winners get no prize money - but get the honour of appearing on a stamp instead.
At the opposite end of the scale is Singapore, which is offering $800,000 (£515,000) for a gold medal.
Many countries in Central Asia are also offering large sums to medal winners.
John Hoberman, a sports historian and expert on doping at the University of Texas at Austin, says Americans are focusing on the wrong issue.
The real question, he believes, is whether athletes should be awarded prize money at all at the Olympics - and he is firmly in the "no" camp.
"Cash incentives are just an incentive to cheat," says Hoberman.
He believes the more money you offer, especially in poorer countries, the greater the chance an athlete will be tempted to dope.
Reporting by Cordelia Hebblethwaite
http://www.bbc.co.uk/news/magazine-19101429
The sweet taste of Olympic victory for US swimmers Ryan Lochte (l) and Michael Phelps (r) Continue reading the main story
In today's Magazine7 days quiz
12 more British quirks in 212 words for 2012 visitors
Viewpoint: G4S and the echoes of the East India Company
Olympics 2012: The secrets behind national anthems
US medal-winning athletes at the Olympics have to pay tax on their prize money - something which is proving controversial in the US. But why are athletes from the US taxed when others are not?
The US is right up there in the medals table, and has produced some of the finest displays in the Olympics so far.
Michael Phelps has broken the record for most Olympic medals ever, and 16-year-old rising star Gabby Douglas has won the all-round gold in the gymnastics - the first African-American woman do so.
So the US is feeling pretty proud of its athletes right now. But not everyone is happy to hear that their Olympic medal-winning athletes are being taxed on their medal prize money.
Athletes are effectively being punished for their success, argues Florida Senator Marco Rubio, a Republican, who introduced a bill earlier this week that would eliminate tax on Olympic medals and prize money.
"Athletes representing our nation overseas in the Olympics shouldn't have to worry about an extra tax bill waiting for them back home," said Rubio.
This, he said, is an example of the "madness" of the US tax system, which he called a "complicated and burdensome mess".
Continue reading the main story
The answer
The US, unlike most countries, has a "worldwide" system of tax, which means that money earned abroad is liable for US tax
The US Olympic Committee awards prize money to its medal winners - $25,000 (£16,000) for gold, $15,000 (£10,000) for silver, and $10,000 (£6,000) for bronze.
This money is considered taxable income by the US Internal Revenue Service (IRS).
According to the advocacy group Americans for Tax Reform (ATR), an athlete on the highest rate of tax (35%), could face a tax bill of $8,750 (£5,600).
The value of the medals themselves could be subject to tax too, according to the ATR - adding a further $236 (£150), $135 (£85), and $2 (£1.20) respectively for gold, silver and bronze.
The Olympic example highlights what they regard as the underlying problem of the US' so-called "worldwide" tax model.
Continue reading the main story
Olympics coverage online
From the BBC:
London 2012: All Olympics news
Sport: Reports, reaction, news
Weather: UK five-day forecast
Official Olympic travel links:
Traffic and travel in London
Travel info for other Games locations
Traffic updates via Twitter @GAOTG
Under this system, earnings made by a US citizen abroad are liable for both local tax and US tax.
Most countries in the world have a "territorial" system of tax and apply that tax just once - in the country where it is earned.
With the Olympics taking place in London, the UK would be entitled to claim tax on prize money paid to visiting athletes, but has given a number of tax exemptions for competitors in the Olympics - including on any prize money.
That means that only athletes from countries with a worldwide tax system on individual income are liable for tax on their medals.
And there are only a handful of them in the world, says Daniel Mitchell, an expert on tax reform at the Cato Institute - citing the Philippines and Eritrea as other examples.
But with tax codes so notoriously complicated, unravelling which countries would apply this in the context of Olympic prize money is a tricky task, he says.
Mitchell is a critic of the worldwide system, saying it effectively amounts to "double taxation" and leaves the US both at a competitive disadvantage, and as a bullyboy, on the world stage.
Continue reading the main story
US medal money...
Gold - $25,000 (£16,000)
Silver - $15,000 (£10,000)
Bronze - $10,000 (£6,000)
"We are the 800lb (360kg) gorilla in the world economy, and we can bully other nations into helping enforce our bad tax law."
Tax laywer and blogger, Kelly Phillips Erb, also believes that the US tax system needs to be modified, and - most importantly - simplified.
The Rubio bill - by adding another exemption to the already complicated tax code - would only make matters worse, she says.
Congress is about to go off on a one-month recess, and with the Olympics already well underway, this is, says Erb, more about "political grand-standing" than anything else.
Not all athletes get prize money along with an Olympic medal - it depends what country you come from.
Continue reading the main story
...And around the world
How much for a gold medal at London 2012 Olympics:
Singapore - $800,000 (£515,000)
Kazakhstan - $250,000 (£160,000)
Kyrgyzstan - $200,000 (£130,000)
Uzbekistan - $150,000 (£95,000)
Russia - $135,000 (£90,000)
Tajikistan - $63,000 (£40,000)
US - $25,000 (£16,000)
Australia - $20,000 (£13,000) plus face on a stamp
UK - No money - but their face on a stamp
Sources: BBC Uzbek, Reuters
Money is not awarded by the International Olympic Committee. The decision whether to offer prize money is made by the national Olympic Committees in each individual country, who also set the sum.
UK medal winners get no prize money - but get the honour of appearing on a stamp instead.
At the opposite end of the scale is Singapore, which is offering $800,000 (£515,000) for a gold medal.
Many countries in Central Asia are also offering large sums to medal winners.
John Hoberman, a sports historian and expert on doping at the University of Texas at Austin, says Americans are focusing on the wrong issue.
The real question, he believes, is whether athletes should be awarded prize money at all at the Olympics - and he is firmly in the "no" camp.
"Cash incentives are just an incentive to cheat," says Hoberman.
He believes the more money you offer, especially in poorer countries, the greater the chance an athlete will be tempted to dope.
Reporting by Cordelia Hebblethwaite
http://www.bbc.co.uk/news/magazine-19101429
"THE GENTILITY OF A LION SHOULD NOT BE TAKEN AS COWARDICE"
A Manchester United FC FANantic - Our history makes us STRONG, your hatred makes us STRONGER
A Manchester United FC FANantic - Our history makes us STRONG, your hatred makes us STRONGER
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soothsayer
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Re: Olympics Prize Money
interesting ... problem here is if you live in a country that is $#% only financial incentive might be of great benefit.
Re: Olympics Prize Money
The president of Kazakhstan can make promises of huge financial rewards because he knows fully well that the odds of his country winning a medal are remote. Its populist politics at its worst. 
Re: Olympics Prize Money
...the govt of those poor countries are paying thousands and millions for gold.
In the USA, the corporations are paying far better thru commercial endorsements.
A picture on wheaties box will fetch close to 5million or more over the years as long as it remains on the market. That's investment knowing how to put your money where it belongs.
Unlike certain African giant will give out (promise) cars and houses
In the USA, the corporations are paying far better thru commercial endorsements.
A picture on wheaties box will fetch close to 5million or more over the years as long as it remains on the market. That's investment knowing how to put your money where it belongs.
Unlike certain African giant will give out (promise) cars and houses
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soothsayer
- Egg
- Posts: 9693
- Joined: Sun Jul 03, 2005 12:10 pm
Re: Olympics Prize Money
well we don't even produce our version of wheaties boxes too put their faces on... and who go buy wheaties in Nigeria...mcal wrote:...the govt of those poor countries are paying thousands and millions for gold.
In the USA, the corporations are paying far better thru commercial endorsements.
A picture on wheaties box will fetch close to 5million or more over the years as long as it remains on the market. That's investment knowing how to put your money where it belongs.
Unlike certain African giant will give out (promise) cars and houses
usa model works well in their conditions. Its different in Africa.. not enough commercial companies to put athletes faces on... not enough competition for the need to use that sort of advertising.. (Africans would probably by the american Wheaties with the american face on it anyway at the moment)
Re: Olympics Prize Money
...wheaties is cereal, and i bet we have cereal (corn flakes) in Nigeria.soothsayer wrote:well we don't even produce our version of wheaties boxes too put their faces on... and who go buy wheaties in Nigeria...mcal wrote:...the govt of those poor countries are paying thousands and millions for gold.
In the USA, the corporations are paying far better thru commercial endorsements.
A picture on wheaties box will fetch close to 5million or more over the years as long as it remains on the market. That's investment knowing how to put your money where it belongs.
Unlike certain African giant will give out (promise) cars and houses
usa model works well in their conditions. Its different in Africa.. not enough commercial companies to put athletes faces on... not enough competition for the need to use that sort of advertising.. (Africans would probably by the american Wheaties with the american face on it anyway at the moment)
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Metho scorpion
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Re: Olympics Prize Money
...whaoooo that will be a good country for Naija olympians to switch instead of Portugal, Norway, GB and those countries with so little to offer...okjazz wrote:The president of Kazakhstan can make promises of huge financial rewards because he knows fully well that the odds of his country winning a medal are remote. Its populist politics at its worst.
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soothsayer
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Re: Olympics Prize Money
well they have 3 golds so they must be doing something right.... I wonder if the guy will pay up though.