Everton FC's chief executive accused Liverpool Council of sending two 'menacing letters' requesting payment of hundreds of thousands of pounds.
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.
READ MORE: Council boss 'surprised and disappointed' with Everton's stance on Bramley Moore cash row
The ECHO has now seen a letter from Everton's chief executive Denise Barrett-Baxendale to Liverpool Council chief executive Tony Reeves. In the letter, dated February 17 2022, Ms Barrett-Baxendale complained about correspondence from the council making demands for payment in relation to the due diligence fees.
Ms Barrett-Baxendale writes: "As I am sure you will understand, I am both surprised and disappointed that the club has received the enclosed letters from LCC, which in their tone are undeniably menacing."
Ms Barrett-Baxendale explains that the club and council had already come to an agreement in relation to the fees.
Her letter reads: " As far as the club is concerned ( and as was recorded in my letter of 26 November ) an agreement has been reached between the club and LCC in full and final settlement of the invoices referred to in each of these letters , subject to your cabinet's approval and the terms of an appropriately worded settlement."
Ms Barrett-Baxendale goes on to say that she hoped the letters had been sent out in "error." She added: "I would also welcome your assurance that all relevant departments within LCC will be made aware of the agreements in respect of these invoices, to ensure the club does not receive any similar correspondence from LCC in future."
Ms Barrett-Baxendale 's complaint concerned two demands for payment sent from the council to the club. The first letter, dated January 28 2022, requested £537,627,.27. The second letter, also dated January 28 2022, requested £302, 678.10.
Mr Reeves responded to Ms Barret-Baxendale's complaint with a written apology on the same day.
His letter, dated February 17 2022, read: "Sincere apologies for the recent payment reminder letter that Everton football club have incorrectly been sent by the council.
"This should not have been sent out by us as we are actively engaging with the club on a proposed settlement of the outstanding fee position between us linked to the council's loan due diligence costs for investigating the possibility of providing a loan on your new stadium project.
"We are investigating why it was sent out but suspect it may have been automatically generated by our systems."
The above correspondence was released by Liverpool council recently in relation to a Freedom of Information Act request.
The council has been 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.
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