Premier League clubs may be forced to increase player wages after the government announced in its budget that image-rights payments will be taxed as income from April 2027.
The change means players who currently receive part of their earnings through image-rights companies — taxed at a 25% corporate rate — will instead pay the top income-tax rate of 45%. Agents say many players will expect clubs to make up the difference, especially when negotiating new contracts.
Some foreign players have clauses that protect them from major tax changes, making clubs liable for any increased costs. Others may demand higher salaries to maintain their net pay, a common feature in modern football contracts.
Image-rights payments can account for up to 20% of a player’s total income, meaning the tax change could significantly raise club wage bills.
The move continues HMRC’s wider crackdown on footballers’ tax arrangements. Financial expert Prof Rob Wilson said clubs may feel “short-term pain” but argued the reform will improve transparency and promote long-term financial integrity in English football.
