Premier League clubs are bracing for higher wage costs after the UK government announced that player image-rights payments will be taxed as income from April 2027.
Image rights – often paid to players via limited companies to cover commercial and sponsorship earnings – are currently taxed at the 25% corporate rate. Under the new rules, they will be taxed at the 45% top income-tax rate, significantly increasing the tax burden for many players.
Agents say that, in most cases, clubs will be expected to cover the difference, especially for players negotiating new contracts. Many deals in the Premier League are based on net pay, with clubs handling the player’s tax obligations. Some foreign players reportedly have clauses that require clubs to absorb the impact of major tax-law changes.
Because image-rights payments can account for up to 20% of a player’s total earnings, the shift could notably increase club wage bills.
The change follows years of HMRC scrutiny that has already recovered hundreds of millions in unpaid tax from footballers. Prof Rob Wilson of Sheffield Hallam University said the new rules will create “short-term pain” for clubs but ultimately bring more transparency and financial integrity to the game.
