Folarin Balogun, a striker for the U.S. men’s national soccer team, faced a red card during the 2026 World Cup Round of 32 match against Bosnia and Herzegovina for a serious foul, which typically results in a match suspension. However, FIFA controversially suspended Balogun’s automatic one-match ban and allowed him to play against Belgium in the Round of 16. Despite protests from Belgium’s federation, FIFA upheld the decision under Article 27 of its Disciplinary Code, highlighting complex sports law nuances. The U.S. Soccer Federation was also fined $40,000 jointly with Balogun by FIFA over the incident.

While red cards usually lead to suspensions, financial penalties such as fines are not automatic but possible under FIFA and league disciplinary systems. For instance, Major League Soccer fines have been levied for serious fouls, and FIFA has imposed fines and suspensions on top players like Cristiano Ronaldo for violent conduct. The disciplinary actions vary widely, depending on governing bodies, and may include suspensions, fines, or both. Monetary penalties from federations impact players differently depending on their contracts and league rules.

From a tax perspective, fines related to red cards present challenges. Under U.S. tax law, professional athletes can generally deduct “ordinary and necessary” business expenses incurred in their trade, which could potentially include fines related to fouls or misconduct on the field. However, the IRS may view these fines as punitive rather than a regular business expense, making deductibility uncertain. Furthermore, government-imposed fines related to legal violations are generally non-deductible, while fines imposed by private sports organizations may have a different tax treatment.

Balogun’s case also underlines the financial stakes at the World Cup level. His club salary at AS Monaco is around $3.68 million for the 2025–26 season, excluding endorsements. The U.S. Soccer Federation distributes FIFA prize money among players, with each member earning approximately $230,769 for reaching the Round of 16, plus $10,000 per match in appearance fees. Suspensions may impact these match fees but not necessarily affect players’ shares of prize money, which federations distribute at their discretion. Ultimately, despite the controversy, allowing Balogun to play may have had greater value to the U.S. team than any financial or tax considerations related to disciplinary sanctions.