Premier League clubs could face rising wage costs after the government announced that players’ image rights payments will be taxed as income from April 2027.
Many top-flight footballers currently receive part of their earnings through image rights companies, which are taxed at the 25% corporate rate. Under the new rules, those payments will instead be taxed at the top income tax rate of 45%, leaving players with significantly higher tax bills.
Agents say many players will expect clubs to cover the additional costs, especially during contract renegotiations. Some overseas signings already have clauses protecting them if the UK tax system changes, but others may now seek higher wages to maintain their net income. Clubs often structure deals around net pay, meaning they shoulder the tax burden directly.
Because image rights can legally make up as much as 20% of a player’s total earnings, the financial impact on clubs could be substantial.
The change comes amid a broader HMRC crackdown on football tax arrangements that has already reclaimed hundreds of millions of pounds. Professor Rob Wilson of Sheffield Hallam University said the shift will create “short-term pain” but ultimately lead to greater financial transparency and accountability in the Premier League.
