VCAT rules Frank Costa’s right-hand man’s company won’t have to pay family $1.5m

A million-dollar dispute between family of the late Frank Costa and the Geelong giant’s right-hand man, relating to a lease deal at Cunningham Pier that proved costly for Cats legend Cameron Ling, has been resolved.

A million-dollar business dispute between the late Frank Costa’s right-hand man and other members of his family centring on the lease of Geelong’s Cunningham Pier has been settled.

The Victorian Civil and Administrative Tribunal has ruled the company directed by Mr Costa’s one-time right-hand man, Carl Schokman, does not have to pay $1.5m to companies directed by Mr Costa’s son-in-law Darren Holroyd, which have operated the pier on a sublease from Mr Schokman since 2009.

Mr Holroyd, married to Mr Costa’s daughter Gillian, ­alleged $1.5m paid through their companies, Cunningham Pier and Holroyd Pier, to Mr Schokman’s company, Seabrook Events, was key money.

Carl Schokman.

Gillian Costa and Darren Holroyd. Picture: Jackie Paige Sanders

Key money, which involves a landlord seeking or accepting money from a tenant for services to change a lease, is illegal in Victoria.

Some of the Holroyds’ claim centred on payments made when terms of the pier lease were changed to include carparking spaces.

VCAT was told the Holroyds at one stage considered Mr Schokman their business and financial adviser.

Cats premiership captain Cameron Ling, who had a stake in Cunningham Pier between 2009 and 2015 with the Holroyds, also gave evidence during the VCAT proceeding.

Ling said he desperately wanted to get out of the deal after he and his partners spent $4.5m renovating the site but faced rising debts and rental costs that were more than twice the market value.

Ling told VCAT he had to sell his family home to get out of the Cunningham Pier deal, and approached Mr Schokman, who dictated the terms of his release.

“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 VCAT.

“I haven’t had to beg too many times in my life, but it felt like I was in that meeting.”

Cameron Ling told VCAT he had to sell his family home to get out of the Cunningham Pier deal. Picture: Alison Wynd

Mr Schokman told the Geelong Advertiser he refuted a claim he put pressure on Ling.

“We certainly didn’t take Cameron Ling's house. Cameron Ling did not pay Carl Schokman or Frank Costa one cent,” he said. “He paid money to get out of his lease, he paid to the current tenant.”

Mr Schokman said the ruling meant Mr Holroyd and other parties had to honour the pier lease until 2025, and he was “very happy”.

“The tenant has got to stay there and we don’t have to give them the $1.5m they sued us for,” he said.

Asked if there would be animosity between the parties going forward, Mr Schokman said: “Nah. I love a tenant who pays rent. I’m a businessman.”

At VCAT, Mr Schokman lodged a counterclaim for $242,772 plus interest, carparking revenue from spaces on the pier and for free parking passes at the pier.

VCAT did not grant those claims.

Mr Holroyd did not comment when contacted.

Originally published as VCAT rules Frank Costa’s right-hand man’s company won’t have to pay family $1.5m