Premier League clubs are bracing for increased wage costs after the government announced that players’ image rights payments will be taxed as income from April 2027.
Currently, many players 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 45% top income tax rate. The change will significantly increase the tax burden on players — and agents expect clubs will be pressured to compensate through higher wages, especially in new contract negotiations.
Some foreign players already have clauses protecting them from major tax changes, meaning clubs would automatically shoulder the cost. Others whose contracts are based on net pay will likely seek adjustments to maintain their take-home earnings.
Image rights can legally account for up to 20% of a player’s total remuneration if deemed commercially realistic by HMRC, meaning the impact on club wage bills could be substantial.
The move comes as HMRC continues its scrutiny of football finances, having recovered hundreds of millions in unpaid tax. Professor Rob Wilson of Sheffield Hallam University said the reforms will bring “fairer taxation” and greater transparency to club wage spending, though he warned of “short-term pain” as clubs adapt.
