Liverpool City Council failings over Everton loan 'could cost thousands'

Work began on Everton's new stadium after it rejected the council's deal and found finance elsewhere

Thousands of pounds could be written off by Liverpool City Council over a deal to lend Everton money for a new stadium, a report has said.

The document said the authority incurred a significant cost looking into the possibility of a loan to the football club without formal approval.

Government-appointed commissioners overseeing some departments said there had been a "failure of governance".

They added that as a result, some costs were irrecoverable.

Documents released ahead of a cabinet meeting on 22 April said the authority incurred significant expenditure to investigate the possibility of a loan to the club for its Bramley-Moore Dock project.

Between 2016 and 2019, Liverpool City Council explored the possibility of lending Everton the money for its new stadium, reported at the time to be about £280m.

The then-mayor Joe Anderson proposed the plan as part of his "invest to earn" strategy.

'Lessons learned' report

It would have seen the council borrow the money at a low interest rate and lend it to the football club, which would repay it with interest and the money would have then been spent on council services.

In the end, the club rejected the plan and secured finance elsewhere, but the council had already spent money on the due diligence process and it is these costs which may not be fully recovered.

The commissioners said the authority failed to adequately manage costs when exploring the deal and some of those costs were now irrecoverable.

They said the council failed to secure a cost indemnity to protect its position on fees and had been in negotiation with Everton for a number of years to reach a settlement without any council approvals in place.

They added that there had been a "failure of governance" and have ordered a "lessons learned" report.

The sums of money have not been disclosed due to commercial sensitivity but it is understood the council will publish them when negotiations are concluded.

The report said the council's deputy chief executive may write off any debt that arises from the difference between the invoice raised by the council and the settlement reached.

There have been several rounds of discussions to try to resolve the issue, which both sides have said they are keen to resolve.

Everton said the 52,000-seater Bramley-Moore Dock stadium would be completed in 2024.

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