Premier League clubs are bracing for higher wage costs after the UK government confirmed in its latest budget that players’ image-rights payments will be taxed as income from April 2027.
Many players currently receive a portion of their earnings through image-rights companies, taxed at the 25% corporation rate. Under the new rules, these payments will instead be taxed at the 45% top income-tax rate, leaving players with significantly larger tax bills.
Agents say players signing new deals before 2027 are likely to demand higher wages to offset the change – and many clubs may end up absorbing the increased tax burden. Some foreign players reportedly have contract clauses requiring clubs to cover any major changes in UK tax law, while others will negotiate higher gross salaries to maintain their net pay.
Image rights can make up as much as 20% of a player’s total earnings under current HMRC guidelines, meaning the shift could have a major financial impact on clubs.
The change comes amid a long-running HMRC crackdown on football tax arrangements. Finance expert Prof Rob Wilson said the new rules will create short-term pressure but should improve financial transparency and sustainability across English football.
