The use of image rights in football
The use of image rights is prevalent in football and the Premier League. Clubs argue that large payments for using players in sponsorship and marketing deals are a part of modern football.
For players based in the UK, an image rights contract could result in significant savings on national insurance contributions for both the individual and the club, with a further deferral of income tax for the player. Foreign players could benefit even more as part of the payments could be made offshore.
It is unsurprising therefore, that HM Revenue & Customs (HMRC) has continued to pay close attention to how football clubs and players have used image rights contracts.
A report in December 2010 said that José Mourinho had paid £10m into an offshore trust caught the attention of HMRC, which said that it will review its deal regarding image rights payments with the Premier League at the end of the season.
Author: Chris Belcher