Premier League clubs are bracing for increased wage costs after the UK government confirmed that, from April 2027, players’ image rights payments will be taxed as income rather than as corporate earnings.
Many top-flight players currently receive a portion of their salary through image rights companies, which are taxed at the 25% corporation rate. Under the new rule, those payments will instead be subject to the 45% top income tax rate — leaving players with significantly higher tax bills.
Agents say players will expect clubs to compensate for the difference, particularly when negotiating new contracts. Players who base their deals on net pay may push for higher wages, and clubs could face the added burden of covering increased tax liabilities.
Some foreign signings have clauses that protect them against major tax changes, making clubs automatically responsible for any extra costs. Others are likely to demand improved terms to offset the impact.
Image rights can legally account for up to 20% of a player’s total remuneration, meaning the financial implications for clubs could be substantial.
The move is the latest step in HMRC’s long-running effort to tighten oversight of footballers’ earnings. Finance expert Prof Rob Wilson said the change would deliver more transparency and accountability in club wage structures, though teams may face “short-term pain” as they adjust.
