Caps, cash and compliance: Tax considerations for professional golfers

“Cantlay’s got his hat on, hip hip hip hooray. Cantlay’s got his hat on, so he must be getting paid.” This chant rang out from the first tee at the 2025 Ryder Cup, a playful reference to Patrick Cantlay’s previous “hat-gate” incident in Rome 2023, when he supposedly refused to wear his Team USA cap amid media speculation over unpaid play.

Cantlay maintained it was simply a matter of fit, but the episode sparked global debate about whether national honour should outweigh financial incentives for professional golfers. This year, the debate about how professional golfers are compensated, and how that income is taxed, rages on in the media.

In this article, we’ll explore the key tax considerations for professional golfers in the UK and Europe and share practical advice to help them navigate a complex international landscape.

How do Ryder Cup participants get paid?

Unlike major championships, Ryder Cup participants don’t receive prize money. In the United States, players are now allocated $500,000, with $300,000 going to charity and the remainder paid to players.

European competitors, on the other hand, don’t receive any money; their participation is purely honour-based. However, golfers’ success or controversy at high-profile events can boost their endorsement potential and media visibility, creating indirect income streams that are taxable in their own right. As cross-border flows of revenue increase, understanding the tax treatment of such benefits has become essential.

The challenges of multiple income streams

Professional golfers’ income is increasingly diverse, comprising:

Prize money: Usually paid by event organisers, subject to the tax rules of the host country.
Endorsements and sponsorships: Often from global brands, generating cross-border payments. These are typically channelled through corporate structures or image rights companies to optimise taxation and future-proof earnings.
Appearance fees and media rights: Especially relevant around Ryder Cup exposure, where non-cash benefits such as reputation enhancement translate into commercial opportunities.

Each of these income streams has its own tax considerations. For UK and European-based golfers, understanding residency status under the Statutory Residence Test is crucial. Extensive travel and multiple tournament locations can blur lines of tax residence, affecting the liability on both direct payments and indirect benefits.

Navigating tax across jurisdictions

The Ryder Cup 2025 was held in New York, so US tax rules apply to earnings from participation and associated income. For UK residents, the US typically withholds tax on non-resident athletes’ earnings. Double taxation treaties can alleviate the burden, but claims must be carefully documented and proactively submitted to ensure compliance and maximise relief. Corporate structures used to hold sponsorship and image rights income are closely scrutinised by HMRC and other authorities, so it’s important to prioritise transparency and clear commercial justification.

Given the complexity of professional golfing income, proactive planning is essential. Players should:

Be aware of their residency status and the implications for worldwide income.
Map their income streams by source and jurisdiction, including non-cash benefits such as media exposure.
Make full use of double taxation treaties to reclaim or reduce withholding.
Make sure that corporate or trust structures are defensible and compliant.
Factor indirect benefits, including reputation gains, into financial planning.
Seek expert advice early to avoid both financial and reputational pitfalls.

A well-planned approach not only optimises net earnings, but also protects a player’s long-term commercial value.

Seek professional advice to keep your earnings on par

The Ryder Cup is a fascinating intersection of sport, national pride and professional earnings. Although direct payments for participation are now part of the conversation, it’s the broader ecosystem of endorsements, appearance fees and reputational capital that carries significant tax consequences.

For UK and European players, carefully structuring income streams and seeking advice from specialist sports accountants are essential to navigating the increasingly complex world of professional golf, in which even a hat can spark questions worth millions in tax planning.

We always recommend that you seek advice from a suitably qualified adviser before taking any action. The information in this article only serves as a guide and no responsibility for loss occasioned by any person acting or refraining from action as a result of this material can be accepted by the authors or the firm.

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