Premier League clubs are bracing for increased wage costs after the UK government announced that players’ image-rights payments will be taxed as income from April 2027.
The change means many top-flight players will see tax rates on their commercial earnings rise from the 25% corporation tax rate to the 45% top income-tax bracket. Agents say that players signing new deals before 2027 are likely to demand higher wages to offset the increased tax burden — costs that clubs will ultimately need to absorb.
Image-rights payments, which can account for up to 20% of a player’s total salary, are commonly used for sponsorships and advertising deals. Some foreign players also have clauses requiring their clubs to cover major tax-rule changes, potentially adding further financial pressure.
The move continues HMRC’s long-running clampdown on footballers’ earnings, which has already recovered hundreds of millions in unpaid tax. Experts say clubs will feel short-term pain but the reform could lead to greater financial transparency and sustainability in the long term.
