Premier League clubs may soon see their wage bills increase following a budget announcement that player image-rights payments will be taxed as income from April 2027.
Image-rights earnings — often paid into limited companies for sponsorship and commercial activities — are currently taxed at the 25% corporation tax rate. Under the new rules, they will instead be subject to the 45% top rate of income tax.
Agents say many players will expect clubs to compensate for the higher taxes, especially during contract negotiations in the lead-up to 2027. Players who are paid on a net-salary basis will be particularly affected, as clubs typically handle their tax obligations.
Some players signed from overseas reportedly have contract clauses that protect them from major tax-regime changes, potentially putting the financial burden on clubs. For others, higher wages are likely to be demanded to offset the increased tax hit.
Image-rights deals can legally account for up to 20% of a player’s total earnings, meaning the new measure could significantly increase club costs.
The change is part of HMRC’s broader crackdown on football-related tax arrangements. Prof Rob Wilson of Sheffield Hallam University said the reform aims to deliver “fair taxation” and greater transparency in club finances, although clubs may face “short-term pain” as they adjust.
