Liverpool Mayor, Joe Anderson, has revealed an alternative funding scenario for Everton's proposed stadium at Bramley-Moore Dock whereby Liverpool City Council could build the ground and lease it back to the club.
Both Everton and LCC are discussing ways in which the club can raise the estimated £500m cost of the stadium on the banks of the Mersey, with the leading proposal being that the City take out a £280m loan at ultra-low interest rates that is then repaid by the club over a period of 25 years.
Under that scheme, the ground and the club would act as security with the Council netting £7m a year in interest payments it otherwise wouldn't receive if the Blues went entirely their own way. Everton would still need to raise the remaining £220m privately.
Under the Mayor's alternate proposal, he told Liverpool Business News that LCC could fund the new stadium entirely if the club were unable to raise their share of the cost via private investment.
"There is an open door to the possibility — it is not ruled out,” said Mayor Andserson.
“Everton want to own their own stadium and they are still confident they can raise the money that would allow them to do that."
Anderson explained that, “there would have to be a completely different securitisation package to go along with that,” under the terms of this different arrangement and it could mean less leverage for Everton where the design, capacity, use and revenue from the Bramley-Moore Dock stadium are concerned.
The original proposal has had its share of critics, with some opponents fearful of risk to City taxpayers even though the terms of the project would put all of the risk on Everton. This Plan B option would involve significantly more capital and risk on LCC's side.
Anderson has given assurances of full transparency in the process and that a vote of the full council would be taken before any agreement is signed.
Quotes sourced from Liverpool Business News