Premier League football clubs may have avoided paying £250 million in tax over three years, according to financial experts. The analysis by Tax Policy Associates focused on the practice of dual representation, where agents are paid by both players and clubs during negotiations, including transfers.
The think tank estimates that this practice reduced tax payments on agent fees. When an agent's fee is split between player and club, the tax due drops from about 60% to 30% of the total payment. The clubs thought to have benefited most include Manchester City, Manchester United, Arsenal, and Chelsea, though all declined to comment.
HM Revenue and Customs (HMRC) confirmed it is investigating a number of clubs over the use of dual representation contracts. In 2021, FA data showed around 68% of Premier League player deals involved dual representation. Tax Policy Associates estimated that top players, agents, and clubs saved £81m in 2019, £91m in 2020, and £81m in 2021.
Labour MP Meg Hillier, chair of the Public Accounts Committee, urged HMRC to examine the practice, stating that guidance needs to be clearer. HMRC issued fresh guidance in April 2021 requiring clubs to keep evidence that agents legitimately work for both sides, and warned that fees should reflect the extent of representation, not automatically be split 50:50.
The Association of Football Agents disputed the findings, citing a fundamental misunderstanding of the transfer market. An HMRC spokesperson said dual representation can be tax compliant but is scrutinised carefully, adding that since 2015, HMRC has recovered £573m from the football industry.
