Everton Kirkby inquiry: City centre stadium a runner

Jan 29 2009 by Richard Down, Liverpool Daily Post

EFC Stadium, design, Kirkby 06 _200

SELLING 10% of Everton FC’s future stadium seats to the corporate sector in a new-build stadium would help the club raise £110m, an inquiry heard.

Campaign group Keep Everton In Our City (KEIOC) said this could mean that Everton would almost entirely fund a new stadium, such as the one planned for Kirkby, without incurring debt or cross-subsidy from Tesco.

This sort of plan would work best on the Kingsway tunnel loop site off Scotland Road, the campaign group believes.

Colin Fitzpartick, speaking for the group yesterday, said: “The main element of this funding plan, Equity Seat Right (ESR), provides a contribution through the securitisation (life-time purchase) of corporate seats.

"This methodology provides stadium funding, yet adds no debt the club. The company responsible for marketing this financial product, Stadium Financing Capital Group, normally expect to finance the construction cost through 10% of the seating capacity being handed over to ESR, but after discussions with a representative it was felt that the club demographic would only yield £110m.

“The loss of corporate revenue during the season can be offset by an outsourced operation of a 200-bed hotel, conference and banqueting facility, similar to those operated by Millennium Copthorne at Sheffield, Reading and Chelsea.”

He claimed that, while SFC, a Morgan Stanley-owned company, had not spoken directly about Everton’s situation, the company had indicated their approval of such a scheme. Patrick Clarkson, QC for Everton and Tesco, offered no cross-examination.

It is understood that the club’s legal team does not want to engage in the debate as they argue that it is not a planning matter.

But Mr Clarkson did cross-examine Trevor Skempton, an architect with professional involvement in Liverpool One and Newcastle United’s St James’s Park stadium.

He quizzed the architect on his support for the Kingsway Loop proposal – one of 39 put forward by KEIOC.