Breakdown: How Athlete Kelvin Kiptum Spent His Millions
The sports world was profoundly shaken by the untimely passing of Kelvin Kiptum, the holder of the world record, whose bright future was only beginning to unfold.
Before his passing on Sunday, February 11, Kiptum had built a five-year-long career. His defining moment came in October 2023 when he broke the marathon record with a time of 2:00:35, surpassing the previous record of 2:01:09 held by the legendary Eliud Kipchoge.
Despite his brief but auspicious professional journey, Kiptum rose to prominence and ranked in the top percentile internationally.
Kiptum participated in a combined total of 13 races, encompassing both local and international events. He received sponsorship from Golazo Company, an organization renowned for pioneering recreational sports events across Europe.
Number of Races Kelvin Kiptum Finished 1st During his Career
Kiptum’s Millions, Amiss?
Throughout that time frame, Kiptum amassed more than Ksh46 million through his triumphs in numerous marathons and the records he shattered.
Nevertheless, the athlete had not yet received the full amount of money owed due to the administrative procedures that occurred before the event organizers transferred funds to the management company responsible for handling the athlete’s finances.
Athletes frequently seek out businesses to manage their finances and invest in aspects such as building their brand, accessing networking opportunities, and obtaining legal and financial support.
After his passing, Golazo Company manager Marc Corstjens stated that the entirety of the owed millions to the athlete would be allocated towards establishing a foundation to support his children’s education.
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“We’re not just a company that looks for talent and sports, but we also look beyond that. We assess the person behind it, to the family. We are thinking about establishing a foundation to support young children through basic education all the way to university in honor of the departed Kiptum and his coach Gervais Hakiziman,” he recently stated.
However, Kiptum spent part of his money transforming the lives of his family.
He acquired a four-acre farm for his father, Samson Cheruiyot, where he pledged to construct a house. President William Ruto honored this commitment by instructing the house to be constructed within an unprecedented seven days and presented it to the family during the funeral ceremony in Eldoret, Uasin Gishu County on Friday, February 23rd.
Moreover, Kiptum effectively fulfilled his responsibilities as a parent by attending to his children, Caleb and Precious, whom he fathered with his wife, Asenath Rotich.
Promises to Family
The athlete had pledged to improve the lives of his family after obtaining his fortune. As per his wife, the long-distance runner had assured his children of wristwatches and outings upon his return home on Monday, February 12th. However, this promise remained unfulfilled as his life tragically ended just 24 hours earlier.
Moreover, Kiptum’s father mentioned that his son had pledged to purchase him a vehicle as a result of his remarkable achievement in breaking records.
Breakdown of Millions
Kiptum secured a staggering Ksh27.3 million for setting a new World record during the 2023 Chicago Marathon. This amount comprises Ksh14.9 million from the event organizers, Ksh7.4 million from Nike, the event sponsor, and Ksh5 million from the Kenyan government.
In the previous year, President Ruto pledged that athletes would be granted Ksh5 million for each record they broke. Additionally, he committed to providing them with various privileges, including a diplomatic passport and state honors.
In April 2023, Kiptum secured the top position in the TCS London marathon, clocking an outstanding time of 2:01:25. As a result of his performance, he earned an approximate sum of Ksh8 million.
In December 2022, the athlete successfully surpassed his rivals in the Valencia Marathon, earning around Ksh11 million in the process.
In general, the athlete’s total earnings average out to Ksh46.3 million, not including earnings from half marathons.
Taxation
The income amassed by athletes is liable to be taxed by the country where the event takes place before being sent back. For example, Kenyan athletes participating in races in the United States are said to be subject to a 30 percent tax by the Internal Revenue Service (IRS).
This occurs because the IRS considers the athletes to be independent contractors and subtracts the amount before disbursing the remaining cash from the prize money.
Breakdown: How Athlete Kelvin Kiptum Spent His Millions