Premier League clubs may soon face significantly increased wage costs following a government decision to classify players’ image rights payments as taxable income from April 2027.
Image rights — often paid to players through limited companies for sponsorships, endorsements and commercial work — are currently taxed at the 25% corporate rate. Under the new rules, they will instead be taxed at the top income rate of 45%, meaning many players will face sharply higher tax bills.
Agents say these increased costs are likely to be pushed onto clubs, especially during upcoming contract negotiations. Many footballers sign deals based on net pay, with clubs covering tax liabilities, and some overseas players even have clauses requiring clubs to compensate them for major tax changes.
As image rights can account for up to 20% of a player’s earnings, the shift could substantially raise clubs’ financial commitments.
The change comes amid HMRC’s continued crackdown on football-related tax structures, which has already recovered hundreds of millions in unpaid taxes. Prof Rob Wilson of Sheffield Hallam University said the reform will bring “fair taxation” and improve transparency in club finances, though he warned of “short-term pain” as clubs adapt to the new rules.
