With the controversy over the taxation of winnings, press reports also stated that a gold medal is worth $650 in bullion value. I don't know if that included only the gold coating, or whether it included the metal inside.

The estimate of about $9,000 in taxes was based on the value of the medal's metal, as well as the cash reward. It also assumed that the winner is in the highest tax bracket possible, which is undoubtedly true of the big endorsement guys like Michael Phelps, but wouldn't necessarily be true of athletes in less popular events.

Moreover, an athlete who is competing on a professional basis (which all of these people probably do, given the expenses and possible financial rewards of competing and winning) can run this as a Schedule C business and deduct from winnings the expenses of training, travel, entry fees, and other expenses of generating this income.

In other words, you should be so lucky as to have their problems.