He said: "I know that everybody connected with Everton - board, shareholders and above all our fans - will be disappointed.
"We intend however to use the experience we have gained in this venture to help bring about our ambitions to take Everton forward.
"Everton will now be working very closely with Liverpool City Council to deliver the first class stadium which Everton supporters want and deserve."
It looks like Liverpool Vision (the developers behind the project) rejected Everton's latest funding proposals which were submitted last week. Bugger.