Premier League clubs could soon face increased wage costs following the government’s budget announcement that image-rights payments will be taxed as income from April 2027.
Currently, many players receive part of their earnings through image-rights companies, which are taxed at the 25% corporate rate. Under the new rules, those payments will instead be subject to the top income-tax rate of 45%, leaving many players facing much larger tax bills.
Agents say players signing new contracts — especially those negotiated on net-pay terms — are likely to push for higher wages to offset the change. Some foreign players are believed to have clauses requiring clubs to cover major tax shifts, meaning clubs may be automatically liable for the increased cost.
Image-rights payments can account for up to 20% of a player’s total earnings, so the impact on club finances could be significant.
The move is part of the government’s ongoing crackdown on football tax arrangements, which has already recovered hundreds of millions in unpaid tax. Professor Rob Wilson of Sheffield Hallam University said the change will create short-term challenges for clubs but ultimately improve transparency and financial stability in English football.
