Marcel Brands has confirmed Everton spent just over £60m during the summer transfer window but that they were able to land James Rodriguez on a free.
The 29-year-old attacking midfielder completed his move from Real Madrid to Goodison Park in September, signing a two-year contract with the option for a further season.
There was some confusion surrounding the deal when it went through with no fee initially reported, and then word from Argentine side Banfield, a club with a stake in any profit from the sale, claimed the deal was a free transfer.
And during Everton's Annual General Meeting on Thursday, Everton's sporting director Brands confirmed the deal was completed on a free transfer.
As reported by the Liverpool Echo, Brands said: 'It was one of the most difficult and weirdest transfer windows ever. The pandemic was clearly involved in this transfer window.
'We finished the window with a squad of 27 players -a little bit more than originally planned.
'We signed six new players. Three on a permanent transfer – Allan, Doucoure and Ben Godfrey. One on a free – James Rodriguez. One on a training compensation – Nkounkou. And one loan without a loan fee – Robin Olsen.'
Brands said that the financial impact of the Covid pandemic forced the club to look away from a number of deals, with a move for now Arsenal centre-back Gabriel Magalhaes said to be among them.
He added the sale of nine players during the window, saw the club recoup £6.5m, leaving them with a net spend of £54m.
Brands added the sale of nine players during the last window, saw the club recoup £6.5m leaving Everton with a net spend of £54m.
Rodriguez made a bright start to his Everton career with three goals and five assists in 14 games across all competitions.