🔗 Share this article

Premier League teams are confronting the possibility of increased salary costs following the official declaration in the budget that image rights payments will be treated as income from the year 2027.

The change will leave many top-flight players with significantly larger taxation expenses, and a number of representatives have indicated that these costs are expected to be transferred to teams, particularly for athletes who agree to fresh deals before the policy is implemented.

Grasping the Consequences of Personal Branding Taxation

Numerous footballers receive branding income directed to corporate entities for business revenues, such as endorsement agreements and promotional earnings. From April 2027, these will be subject to the 45% top rate of income tax, instead of the corporate tax rate of 25%.

Some Premier League players signed from overseas are understood to have stipulations in their agreements that hold their teams responsible for any major alterations to the UK’s tax regime, but those who do not are likely to demand higher wages.

Deal Discussions and Monetary Consequences

Many players negotiate contracts based on net pay, with teams managing their tax obligations, a practice likely to continue. Image rights payments often make up a substantial part of players’ salaries, which is permitted by HMRC if the sum is deemed economically viable and does not exceed 20 percent of overall income, so the higher tax burden for clubs may be significant.

“Under this new policy, the government is guaranteeing remuneration aligns with fair taxation, and giving a clearer picture of the wage bills driving economic viability discussions in English football. There will be some short-term pain as clubs adjust, but in the long run this encourages greater honesty, accountability and trust in the financial aspects of the game.”

Official Action and Past Background

This official step follows a extended crackdown by HMRC on players' income, which has recouped hundreds of millions of pounds in outstanding taxation.

• Image rights payments will be taxed as income from April 2027.
• Athletes may seek increased salaries to compensate for rising tax bills.
• Teams face potential increases in salary outlays as a consequence.
• The change aims to ensure fairer taxation for top-paid footballers.