Breaking News: Jannik Sinner set to lose $2.6 million of prize money after ATP Finals win over Carlos Alcaraz…see more

Because Sinner went through without losing a single match, he earned the highest possible prize money on offer.

At the ATP Finals, each of the eight players’ prize money is determined on how many matches they win during the round robin, as well as whether they make the final. All eight players get $331,000 (US) just for making the season-ending tournament, which features only the top-eight players in the ATP rankings. That equates to about $500,000 Australian.

A win in the group stage adds another $600,000 (AU), and a semi-final victory gets each player another $1.8m. The winner of the final gets an additional $3.6m, meaning Sinner walks away with the maximum amount of $7.8m (AU) on offer.

But a large chunk of it won’t actually end up in his pocket. Sinner will only walk away with about $5.2m because $2.6m will have to be paid in taxes. Italy charges athletes who are non-residents with a withholding tax, and in Sinner’s case it will be about 30 per cent.

Even though Sinner was born in Italy, he’s resided in Monaco since 2020. His move to the municipality was designed to limit the amount of income tax he pays because Monaco is a tax haven for non-French residents.

It means Sinner doesn’t have to pay taxes on his earnings where he lives, but he still has to fork out to the government of tournaments where he plays.