Many big names in the athletic world rake in millions of dollars every year, not just through prize money but from lucrative endorsement deals. These deals are often the subject of curiosity from the public. Anytime an athlete signs a new contract, people are eager to know the financial details and understand the true value of such agreements. On paper, the total earnings of the athlete will boggle anyone’s mind, but as one digs deeper, the true reality is something else.

Professional athletes like Serena Williams and Megan Rapinoe have often championed the cause of the lack of equal pay in sports. They have time and again pointed out the hidden costs that plague the community. Now, a Jamaican blogger, and former Track Star and Olympic Medalist, has unveiled the hidden reality behind the glamorous facade of professional sports contracts.

Track and field blogger deconstructing professional sports contracts

Rori Dunk, a track and field enthusiast from Trelawny, Jamaica, pulled the curtain on the seemingly profitable world of professional sports contracts. However, on X, he posted, “Athletics contracts have a lot of hidden costs that are not so hidden Most athletes don’t get the true numbers of their contracts explain Today I’ll show you the true cost of an athlete who signed a 100k/yr contract in Georgia and what they take home *in theory*”.

Out of the big deductions, the taxes levied on an athlete’s earnings are among the most significant. Dunk explains that if an athlete files his taxes as an individual, he will only get to keep $72,000 of the $100,000. Thereafter, the athlete will need to pay about 12-15% to his agent out of the full value of the contract.

That further takes away $12,000, leaving the athlete with $60,000. While these two big deductions are enough to affect the athletes’ take-home pay drastically, there are two others that ultimately end the allure of these contracts. One is a coaching fee, and the other is a treatment contingency fund.

The first varies from person to person, as the coaches might settle for a yearly charge or a monthly charge. This depends on the coaching staff’s preference and the athlete’s relationship with them. Nevertheless, Rori Dunk estimates it to amount to about $10,000, leaving the athlete with $50,000. The athlete will also need to pay for his cardio and fitness treatment sessions, which can come up to $3000. Hence, now the athlete has only $47000 left from the $100,000, but the deductions don’t stop there.

The deductions keep continuing 

There are some big payments left that the track and field athlete is personally liable to pay. These are not deducted directly from the contract; rather, the athlete pays them from his own earnings. These include payments for health insurance and retirement plans. An athlete’s career in elite sport can only run for a limited number of years. Thus, a good retirement plan is crucial for future financial planning and may cost more in premiums.

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Rori Dunk calculated all of these expenses and found that the athlete will have the bare minimum to meet his monthly expenses from the $100,000. He said, “If you live a very very modest lifestyle in Georgia and your bills and necessities add up to $2,000 a month equaling $23,000 a year you’ll be able to pocket $24,000”. He has put everything into perspective and highlighted the financial responsibilities of an elite sportsman.

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