A key stage in Everton FC’s proposed move to Bramley Moore Dock is set to be approved by Liverpool City Council today, allowing for the creation of a special purpose vehicle to lease the stadium from a funder, and sub-lease it back to the club.
A report is being presented to the council’s cabinet today, recommending the council progresses the contract from heads of terms to final form, in order to create the SPV.
Within the report, the council said: “The city council has been working with Everton Football Club to create a world class, ground-breaking and iconic stadium as a much-needed new home for EFC for the next century. The proposed new stadium by EFC at Bramley Moore Dock will be a landmark for the city’s spectacular north Liverpool waterfront and a powerful statement of intent for the club and the City of Liverpool that will resonate globally.”
The Bramley Moore Dock proposal is for a funder to acquire a 200-year head lease on the stadium land, which it will let for 40 years to the SPV. The SPV will be set up, owned and controlled by the council. The SPV will sub-let the stadium to Everton. The club will then have the option to acquire the stadium at the end of the 40-year period.
Everton and Peel Land & Property agreed heads of terms earlier this month on the Bramley Moore Dock site, which forms part of the £5bn Liverpool Waters scheme.
Under the proposed finance structure of the SPV the council will not provide any finance for the new 50,000-seat stadium, which is anticipated to cost in excess of £300m. The club will be responsible for funding the stadium build.
Everton will pay an annual security fee to the council. The support provided to the club will not impact future borrowing needs and involves no financial outlay for the council.
The proposed stadium sits within the council’s plans to drive regeneration in the north Liverpool dock area, plans that include the recently launched masterplan for the Ten Streets area.