The chief executive of Liverpool City Council said he was "surprised and disappointed" with Everton FC during negotiations in relation to fees spent on the Bramley Moore project.
The council spent £841,000 on fees after it agreed to help fund Everton FC's Bramley Moore stadium on the waterfront. Everton later sought alternative sources of funding and did not accept the proposed investment.
In May Everton agreed to pay £502,000 of the £841,000 incurred by Liverpool Council. In a joint statement, it was said that an “amicable settlement” had been reached regarding the Bramley Moore project.
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The ECHO has now seen a letter from Tony Reeves, the council's chief executive, sent to Everton chief executive Denise Barrett-Baxendale. In the letter, Mr Reeves expressed a degree of frustration with the club.
The letter, dated May 25, 2021, was released by the council in response to a Freedom of Information Act Request.
It reads: "Thank you for your letter of 14 May 2021, sent on behalf of the Board of Directors of Everton Football Club in respect of the professional fees which Liverpool City Council has incurred in connection with exploring the possibility of a secured team (sic) loan facility to be used in the financing of the stadium at Bramley Moore Dock.
"I have to say that I am surprised and disappointed at the content of your correspondence and the city council will challenge the position which Everton is taking in this matter.
"The city council wholly refutes the contention in the second paragraph of your letter that Everton's position has remained consistent throughout."
The letter was sent during a period of time when the council was involved in complex negotiations with Everton in relation to the fees. The negotiations took place during a series of meetings and letters.
There is no suggestion of wrongdoing in relation to Everton's involvement in this matter. In May a cabinet report revealed that government-appointed commissioners accused the council of “failure of governance” in relation to the fees.
The local authority was ordered to conduct an investigation into how it incurred “significant expenditure” to investigate the possibility of a loan to Everton FC as the club sought funding options for its new ground over a three-year period.
The commissioners identified a 'failure of governance' and found the council acted 'without any formal council approval and without any budget provision approval.'
In May the local authority referred to the matter as a "legacy issue which had been amicably resolved by both parties."
Everton agreed to pay £502,000 of the £841,000 incurred by the council.
Both parties said it was “reasonable and proportionate” for the Premier League club to pay more than £500,000 given that the work done was “solely for the benefit of Everton.”
A proportion of the fees incurred related to Liverpool Council exploring the use of any future stadium in its bid for the 2022 Commonwealth Games.
The Echo understands that Everton has remained consistent in that there was no agreement reached on the liability of the due diligence fees incurred in setting up the funding deal. Once Everton chose to seek funding from elsewhere the club entered into negotiations and reached an amicable settlement to meet costs which were reasonably incurred and attributable to the project funding.
Preliminary work on the 52,888 capacity stadium started last June. Concrete structures containing stairwells have been built and steel framework linking the two northern corners is expected to be installed in the next six weeks.
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