Yes, this totally sounds legit and not at all like a financial loophole to pull tax free money out of an asset.
They own the club, which owns the land, so it should be legal for them to sell it to themselves; but I would bet they are pulling a tax avoidance maneuver to “rent” the stadium from themselves so they don’t have to pay as much real estate tax while writing off rental costs from the club. Likely some nuance about the club being a company held in the UK with higher taxes than the Saudi owners who do not live in the UK.
EDIT: I was wrong. This is a Financial Fair Play loophole for the sport, where they are claiming a profit from a sale to enable them to spend more money on players. This is the exact same as City having a billion dollar sponsor… who happens to be themselves. This loophole is closing next year.
Yes, this totally sounds legit and not at all like a financial loophole to pull tax free money out of an asset.
They own the club, which owns the land, so it should be legal for them to sell it to themselves; but I would bet they are pulling a tax avoidance maneuver to “rent” the stadium from themselves so they don’t have to pay as much real estate tax while writing off rental costs from the club. Likely some nuance about the club being a company held in the UK with higher taxes than the Saudi owners who do not live in the UK.
EDIT: I was wrong. This is a Financial Fair Play loophole for the sport, where they are claiming a profit from a sale to enable them to spend more money on players. This is the exact same as City having a billion dollar sponsor… who happens to be themselves. This loophole is closing next year.