Manchester United are in a tax battle that could end up costing the club - and players - millions, reports The Sun. The Premier League champions confessed they are being investigated by HM Revenue and Customs over "image-rights" contracts handed to players.
The tax office argue the image-right payments are taxable but the club dispute this, so the matter is heading for the courts. United say they will face a bill of at least £5.3million if they lose.
The club's big names, like Wayne Rooney and Rio Ferdinand, would also be left counting the cost - a 50 per cent bill on their image-rights income.
United made their tax fight public yesterday as they issued the prospectus for a £500m bonds issue to tackle the club's huge debts.
A statement tucked away within the prospectus revealed: "HMRC's position is that payments in relation to image rights may be a form of remuneration and, as such, should be taxed."
A victory for the taxman would open the floodgates for claims against other leading clubs and stars.
