Premier League clubs are bracing for increased wage costs after the UK government announced that, from April 2027, players’ image rights payments will be taxed as income rather than corporate earnings.
The change means image rights – often paid into limited companies and taxed at 25% – will instead fall under the top income tax rate of 45%. Many top-flight players rely on these payments for sponsorship and commercial income, meaning their personal tax bills will rise sharply.
Agents say players signing new contracts are likely to demand higher wages to offset the loss, and clubs may be forced to shoulder the additional costs. Some overseas players have clauses protecting them against major tax changes, shifting the burden directly onto clubs.
Image rights can legally account for up to 20% of a player’s total earnings, so the financial impact could be significant across squads. The move follows years of HMRC scrutiny into footballers’ earnings, which has recouped hundreds of millions in unpaid tax.
While experts say clubs may feel “short-term pain”, they argue the change will create more transparency and financial stability by ensuring wage bills reflect true taxation levels.
