A recent Times investigation (“Premier League clubs claim millions in tax relief meant for ‘science and tech’” George Greenwood article 17/02/25) has revealed that 28 sports teams, including Premier League football clubs, have claimed £13 million in R&D tax relief over the past five years. This has sparked debate over whether football clubs genuinely conduct research and development or if they are taking advantage of a scheme intended for science and technology.
R&D in Football: More Than Meets the Eye?
At first glance, the idea of football clubs engaging in R&D might raise eyebrows. After all, R&D tax relief is designed for businesses making genuine scientific or technological advancements. However, dismissing these claims outright would be premature.
Football is no longer just about athleticism; data science, AI, and sports medicine are transforming the game. Clubs invest in innovative technologies to analyse player performance, enhance scouting systems, and improve injury prevention. Machine learning models help clubs predict player fatigue, refine tactical strategies, and identify emerging talent with greater precision. These advancements are not just beneficial for one club but can contribute to broader improvements across the sport.
Another area of potential R&D is stadium innovation. Clubs are continuously looking for ways to improve fan experience, increase energy efficiency, and develop smart stadium technologies. If a club is pioneering new materials, structural designs, or crowd management technologies, this could qualify as legitimate R&D.
Large Clubs and RDEC Claims
The scale of football clubs means that most claims fall under the Research and Development Expenditure Credit (RDEC) scheme, designed for larger companies. Unlike the SME scheme, which provides tax credits even when loss-making, RDEC offers a taxable credit, making the relief less generous during the period in question. But the schemes have now merged with the exception of the intensive ERIS scheme for loss making R&D intensive SMEs at a better rate.
However, a perception persists within HMRC that SME claims are more likely to be incorrect than those made by large companies. This raises concerns about fairness in scrutiny. All claims, regardless of the company size, should be subject to the same level of investigation.
Fair Scrutiny, Not Bias
HMRC has faced criticism for its handling of R&D tax relief, with fraud and error losses estimated at £4.1 billion since 2020. While tackling fraudulent claims is essential, it is equally important that legitimate innovation—whether in football or any other industry—is fairly assessed.
Clubs have declined to disclose details of their R&D activities, citing commercial sensitivity. While this secrecy fuels scepticism, it does not automatically mean claims are invalid. What matters is that HMRC evaluates each claim based on merit, not on the industry's public perception. I do find the tone of the Times article a little unfair in this respect. If football clubs are advancing knowledge or capability in a field of science or technologogy in pursuit of there trade and meet the other requirements they are entitled to claim.
Final Thoughts
I have worked on a sports related R&D claim (not in the article) and cannot say more than that due to confidentiality, and believe that valid R&D can occur in the sports sector. It is wrong to prejudge. From AI-driven performance analysis to innovative stadium engineering, football clubs are not immune to technological advancement.
What is crucial is that HMRC investigates all claims fairly and consistently, ensuring that businesses in any industry—whether football, pharmaceuticals, or manufacturing—receive the tax relief they are genuinely entitled to.
As a Liverpool fan I suspect Arnie Slot may be the product of R&D, he followed a legend and is making it look easy, it is almost inhuman he is like a machine 🙂
If your business is investing in true R&D and wants clarity on eligibility, feel free to contact us for expert guidance.
Christopher Toms MA MAAT
Compliance Director, RandDTax