ACC Liverpool Group, the company that runs the host venue for the upcoming Eurovision Song Contest, owes the city council £7.1m.
The council-controlled group’s outstanding debt includes £2.6m of normal trading balances and £4.5m of aged debt relating to property transactions from the year ending March 2020.
According to a council spokesperson, the group, which incorporates the M&S Bank Arena and Convention Centre, Exhibition Centre Liverpool and the Pullman Hotel, has set out ‘a number of options to recover the sums in its business plan’.
‘In line with our risk-based approach to setting reserves, we have prudently set aside a proportion of the money owed until it is paid,’ the spokesperson added.
A review of the ACC Liverpool Group published in December set out recommendations for improving the city council’s governance and oversight of its subsidiary to reduce the financial risk to the local authority.
‘The repayment plan forms part of wider changes to Liverpool City Council’s governance and oversight of the ACC Liverpool Group, following a recent review,’ the spokesperson said.
‘For example, responsibility for the cost of repairs and maintenance of the complex is being transferred to the organisation as part of a new lease, to reduce the financial burden on the council.’
Faye Dyer, managing director of The ACC Liverpool Group, said: 'The £7.1m balance due comprises £2.6m of in year trading sums, which will be paid prior to the financial year end, alongside £4.5m of historical debt. The debt relates to property transactions from 2015 to March 2020, following the expansion of the campus and facilitating a period in which the group successfully grew its market share and presence. The benefits of this support are being recouped over the longer period of investment. We have set out a number of options for the council to recover this historical debt in our recent business plan and look forward to finalising this, alongside signing new leases, later this year.
'Our trading results continue to recover after a successful return to full capacity live events following the pandemic and our financial performance now facilitates the transfer of further property related cost obligations to ourselves, reducing future expenditure for Liverpool City Council.
'We are proud to have played a key role in the renaissance of Liverpool since 2008 and we look forward to continuing our positive relationship with Liverpool City Council, boosting the city region’s image as a place in which to live, work and invest.'
