Rory McIlroy has been warned that he could lose as much as £20million due to tax as he prepares to play at the PGA Championship.
The 36-year-old will go into the second major of the year on a high after beating Justin Rose to win the Masters last month.
That achievement saw the golfer finally complete the career Grand Slam, having last won a major all the way back in 2014.
It also saw the Northern Irishman secure £3.1m in prize money, adding to his huge net worth of £225m in the process.
Rory McIlroy has been warned that he could lose as much as £20million due to tax as he prepares to play at the PGA Championship
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Now, however, McIlroy has been warned that he faces potentially paying as much as £20m in tax as he continues to elevate his game to new levels.
Sport finance expert Dr Rob Wilson, speaking to OLBG, anticipates a 'heavy bill' for the golf icon.
“With Rory McIlroy, we're talking about a player who will be earning north of £50m annually," he said.
"That of course is across his prize money and his endorsements.
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“This year, you’re looking at a potential £75m year given his recent success at the Masters.
"The PGA Championship alone offers around $3.5m (£2.6m) for the winner but as we know the tax implications depend very much on the jurisdiction so where the tax earnings are situated in the world.
“So let's just take Rory as a Northern Irish resident, he'll be subject to UK tax. On any worldwide income that will be up to 45 per cent.
“When he competes in the US, he's also liable for US federal and state taxes, though he can claim tax relief under the existing UK US tax treaty. It’s interesting to see whether that will continue under President Trump.
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Rory McIlroy appears relaxed ahead of the PGA Championship after winning the Masters last monthREUTERS“Overall, I would suggest he's probably losing somewhere between 40-50 per cent of his gross playing income to tax depending on where that's earned.
“Obviously you need to deduct all of his expenses and they're to be significant because of the lifestyle of a golfer, travel, accommodation, all that stuff is going to come off a lot of those figures.
“Say we take that £50m annually, he's not going to lose £25m of that, but he'll lose a heavy proportion, perhaps £20m in tax.
“Critically though, his corporate structures and image rights vehicles will be optimised of course to defer and reduce some of those liabilities. So it's difficult to put a headline rate on it for you.
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“Around 40-50 per cent is what you would expect to pay, but the corporate structures will reduce that.
"It’ll be a heavy tax bill I would imagine, but you can only pay tax if you've earned the money.”
McIlroy is the favourite to win the PGA Championship.
Having finally ended his agonising wait for a major, many associated with the sport feel the 36-year-old can dominate for many years to come.
Rory McIlroy previously won the PGA Championship back in 2014GETTYMcIlroy previously won the PGA Championship in 2014 when he was just 25 years old.
He fended off competition from Phil Mickelson and Rickie Fowler to go all the way at Valhalla.
