The news that we all expected was revealed at 5pm today (and throughout the day via certain media).
Everton have finally got their new stadium!! Or have they? Is it all confirmed? Who is paying for it? And what is next? Read on…
What Has Been Announced?
Everton announced in January of this year that their primary concentration was to be on the Bramley Moore Dock region. Today was cementing that desire and announcing the financial package that would make that dream a reality. This is a £300m package that will include around £22.5m for the land purchase, which is to be paid up front.
Next Friday (31st March) a report will be presented to the Liverpool City Council recommending that a Heads of Terms be approved. That would create a Special Purpose Vehicle (SPV) company that would take a lease of the stadium from a funder and then sub-lease it to the club.
The club have been working with Peel, who own the land, with assistance from Joe Anderson, Mayor of Liverpool and the local authority.
What’s A Heads of Terms?
It’s essentially an agreement before a full contract is signed. That’s sensible seeing as how the planning permission won’t be rubber-stamped for a while. It has laid out that we’d have a 200-year lease of the land. The stadium will be leased to a company that will be funding the stadium that will be controlled by LCC and sub-leased to Everton for 40 years. After that point we’ll have paid it off and it’ll be ours debt-free.
Quite the opposite. Essentially it’s easier for the Council to get the money up front than for an individual investor. Moshiri and his colleagues are going to be paying for the stadium, so it’ll not be paid for by the council at all.
The money won’t even need to be funded by the council – Everton will guarantee that they’ll pay into the company that has been set up. That will be via season ticket sales, player sales and private investment. Probably the naming rights too, etc. The Council will actually make money by holding the company rights as Everton will pay them interest to do so, which they can use for the local Community. Everyone wins here!
Next we sit back and chill out. The meeting next week should be rubber-stamped quickly. With Anderson behind it the rest of the council team should back the plans 100%.
After that point there will be a long investigation period. The land can now be accessed as an agreement has been made, and the planning permission and stadium design stage can really get going.
Early next year I would imagine that all will be revealed. Summer 2020 for a grand opening perhaps?