Rory McIlroy set to immediately lose nearly half of his Masters prize money

Rory McIlroy has finally completed golf’s career Grand Slam with a dramatic Masters victory at Augusta National – but his prize money has already taken a hit.

The Northern Irishman triumphed in a nail-biting playoff against Justin Rose on Sunday, securing the coveted Green Jacket that had eluded him for so long.

This historic win comes 11 years after McIlroy’s last major success, adding to his previous US Open, PGA Championship, and Open Championship titles.

The 35-year-old’s path to victory was anything but straightforward, as he blew a four-shot lead before recovering to force the playoff.

His stunning second shot on the playoff hole at the 18th sealed his place among golf’s true icons.

McIlroy’s triumph earned him a record-breaking $4.2 million (£3.3m) from the largest purse in Masters history, totalling $21 million (£16.5m).

However, the champion’s celebrations may be slightly tempered by American tax regulations.

Despite living in Florida, where there is no state income tax, McIlroy’s winnings are fully subject to US federal taxes.

According to tax expert Paul Barham, Augusta winnings face a 37% federal tax rate, with additional charges bringing the effective rate to 42.39%.

This means nearly $1.8 million (£1.4m) will be deducted from his prize money.

Added on top of that is the fact his caddie Harry Diamond is also owed a sizable 10% slice of McIlroy’s prize money after winning the competition, amounting to £330,000 – which will also be taxed.

The Northern Irishman will ultimately take home approximately $2.1 million (£1.6m).

Sport finance expert Professor Rob Wilson explained the situation to OLBG: “While federal and state taxes in the US could see McIlroy lose around 45-50 per cent of his winnings, the symbolic and commercial value of winning The Masters far outweighs the immediate net income loss.”

Wilson added: “Even after tax, a first-place prize of around 2.7million ($3.6million) would still leave McIlroy with approximately 1.5million ($2million) in take-home earnings.”

“More importantly, this victory now completes his career grand slam, unlocking major off-course earnings and further endorsements from the likes of Nike.”

“The longer-term commercial upside from sponsors, branding and new markets is far more valuable than the prize cheque itself.”

McIlroy’s career prize money now exceeds $160 million (£127m), placing him alongside Tiger Woods as one of only two golfers to break the $100 million barrier in PGA Tour earnings.