Premier League clubs are bracing for higher wage costs after the UK government announced that player image-rights payments will be taxed as income from April 2027.
Many top-flight players currently receive a portion of their earnings through image-rights companies, which are taxed at the 25% corporate rate. Under the new rules, these payments will instead be subject to the 45% top income-tax rate — significantly increasing players’ tax bills.
Agents say players negotiating new contracts are likely to demand higher wages to offset the change, especially as many deals are based on net pay with clubs covering tax obligations. Some foreign players also have contractual clauses requiring clubs to compensate them for major tax-regime changes, adding further pressure to wage budgets.
Image-rights arrangements can make up as much as 20% of a player’s total earnings, meaning the financial impact on clubs could be substantial.
The move forms part of HMRC’s long-running effort to tighten oversight of footballer earnings, which has already recovered hundreds of millions in unpaid tax. Experts say the reform will create more transparent wage bills and support financial sustainability in the Premier League, though clubs may feel “short-term pain” as they adjust.
