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Liverpool Echo
Liverpool Echo
National
Tom Duffy

Liverpool Council advised Everton to go online to pay £530k invoice 'the easy way'

Liverpool City Council advised Everton to pay an outstanding £530k invoice by logging on to their website and paying online.

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: Everton FC boss accused Liverpool council of 'menacing' demand for £537K

The ECHO has now seen correspondence sent from the council to Everton which includes advice on how the club can pay the fees online. The first letter concerns a balance of £537,627.27 and the second balance concerns a demand for £303,678.10.

The letters, sent out on January 28 2022, offered a number of payment options including online. The letter read: "Paying online is an easy way to pay. Log onto www.liverpool.gov.uk and follow the instructions. "

Both letters advised Everton that they could make arrangements to pay the amount in monthly or weekly instalments. Council tax bills are normally paid in this way. And the letters warned Everton to respond within 14 days to avoid 'legal recovery. '"

Everton's chief executive Denise Barrett-Baxendale complained to the council about the tone of the letters, which she described as "menacing."

Tony Reeves, the council's chief executive, responded immediately and apologised. Mr Reeves said it was suspected the letters were sent out "automatically" by the council's 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.”

The ECHO understands 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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