Premier League clubs are bracing for rising wage costs after the UK government announced that players’ image-rights payments will be taxed as income from April 2027.
Many top-flight players currently receive part of their earnings through limited companies for commercial work such as sponsorships and advertising. These payments are taxed at the 25% corporate rate, but under the new rules they will be subject to the top income-tax rate of 45%.
Agents say the change will leave players with significantly higher tax bills — and clubs will likely be pressured to cover the difference, especially for new contracts signed before the rule takes effect. Many contracts for foreign signings already include clauses protecting players from major tax changes, potentially pushing more costs onto clubs.
Because Premier League salaries are often negotiated based on net pay, clubs typically manage and cover players’ tax liabilities. With image-rights payments allowed to make up as much as 20% of earnings, the financial impact could be substantial.
The adjustment is part of HMRC’s ongoing crackdown on football tax arrangements, which has already reclaimed hundreds of millions in unpaid tax.
Finance expert Prof Rob Wilson said the shift will cause “short-term pain” for clubs but offers long-term transparency and stability for the financial health of English football.
