PIER DEAL COST ME MY HOME
STAR CAT’S PAIN: Ling‘s brutal business battle
CATS great Cameron Ling has spoken of his desperation to get out of a disastrous business deal on the city’s waterfront that sent him on a downward spiral and cost him his family home.
The premiership captain was in a partnership that suffered devastating financial losses after taking over a sublease of Cunningham Pier in 2009.
Ling and his partners spent $4.5m renovating the site, but the business faltered amid rising debts and rental costs. A recent ruling from the Victorian Civil and Administrative Tribunal has revealed Ling’s plight and how he became “desperate” to exit the “stifling” conditions of the lease.
GEELONG champion Cameron Ling has spoken of his desperation to get out of a disastrous business deal on the city’s waterfront that sent him on a downward spiral and cost him his family home.
The premiership-winning captain was in a partnership that suffered devastating financial losses after taking over a sublease of Cunningham Pier in 2009.
The pier – which had been leased out by a company owned by former Cats president Frank Costa – went on to become the home of a convention centre, bar and a high-end dining restaurant.
Ling and his partners spent $4.5m renovating the site, but the business faltered amid rising debts and rental costs that were more than twice the market value.
A recent ruling from the Victorian Civil and Administrative Tribunal has revealed Ling’s plight and how he became “desperate” to exit the “stifling” conditions of the lease.
In evidence given to the tribunal, the former All-Australian said he practically needed to beg Mr Costa’s right-hand man, Carl Schokman, to get out of the deal in 2015.
Ling said the financial burden forced him to sell his home and investments, before approaching Mr Schokman, who dictated the terms of his release. He claimed Mr Schokman also brought pressure on his wife and young family.
“When Carl effectively yelled at me and my accountant and demanded certain things, I’ll never forget that meeting, probably for the rest of my life,” Ling told the tribunal.
“I haven’t had to beg too many times in my life, but it felt like I was in that meeting.”
The tribunal heard Ling later regretted his “foolishness” in entering into the sublease on terms that he did not understand.
He said he naively went ahead with the deal based on the advice of Mr Costa and Mr Schokman, who described it as an opportunity at “the best location in Geelong”.
The revelations have surfaced amid a legal stoush involving Mr Schokman and relatives of Mr Costa, who was a prominent businessman before his death earlier this year, aged 83.
The dispute centres on a series of business dealings at Cunningham Pier, which has been leased by Seabrook Events Pty Ltd since 2007.
The tribunal heard Mr Schokman has long been the “directing mind” of the company, despite Mr Costa and his wife, Shirley Costa, effectively being the controlling shareholders.
Mr Costa’s daughter, Gillian Holroyd, was one of Ling’s business partners and continues to hold the sublease of Cunningham Pier with her husband.
The pair launched legal action last year to settle a dispute with Mr Schokman over issues including a $1.5m payment that was made to secure the original sublease in 2009.
The couple want the money repaid, alleging it was “key money”, which is illegal in Victoria.
VCAT senior member Rohan Walker last week made a series of preliminary rulings in favour of Mr and Mrs Holroyd. It came after evidence from a string of witnesses, including Ling and Mr Schokman.
Mr Walker said he found Ling to be a credible witness, but was damning in his assessment of Mr Schokman, who he said was unreliable.
Final orders are yet to be made in the case.
I haven’t had to beg too my many times in life, but it felt like I was in that meeting.