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Rumour Lingy Goes Bust

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Financial Literacy
CrowsB4hoes said:
He says in the article he has an accountant. What were they doing?
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Accountants aren't generally useful in that scenario, unless they themselves have considerable experience in the area. Leases should be viewed by a qualified and experience lawyer. That's who gets called when there is a leasing dispute. A friend of mine makes a very good living just from matters relating to leases.
 
It’s not at all uncommon for AFL players to blow their cash on sketchy investments. Quite a few got done on forestry schemes in the late 2000s, and some of these notorious ‘property deals’ have ended in tears - ask Nathan Brown how his property investments with Clinton Casey went.
 

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CrowsB4hoes said:
For enforcing a lease? No, he’s a business man.
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Pretty dodgy to be shafting a member of your Geelong football royalty though. As much as Ling should have done his due diligence, and that's on him, Costa didn't exactly show a whole lot of loyalty to his Cats brother here - he would have known what Ling was in for when he signed the lease. Still, I expect Ling has the resources to rebound better than most. Ling was probably pretty conflicted when Costa passed.
 
JEagle said:
Financial Literacy

Accountants aren't generally useful in that scenario, unless they themselves have considerable experience in the area. Leases should be viewed by a qualified and experience lawyer. That's who gets called when there is a leasing dispute. A friend of mine makes a very good living just from matters relating to leases.
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His accountant should at least know enough to say "hey you need a lawyer to look over this". So there is at least $4.5 million spent on renovating the site, plus whatever the lease payments were and Ling signs a deal without understanding the terms?
 
dmc333 said:
Given that old stat from Sports Illustrated that said 78% of NFL players were broke after a couple of years and 60% of NBA players were broke after 5, it would be interesting to see what it's like in the AFL. Why just be humble and stick your short term ballooned salary in index funds when you're the Mayor of Geelong and need to be a player about town?

Adding insult to injury, looks like Lingy got stitched up by old Frank.

I'm sure there's someone here who knows a bit more, was he truly cleaned out?


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 $4.5 million 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”.

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To be fair to Costa, Ling paid $1 for the lease. He then went and spent all the money on it and failed.

He probably could have got out of it early by selling it for $2 and doubling his money.
 
So he basically thought we was going to make money for Jam?

You take the risk, you deserve the downfall

I am sure he would be licking his lips if he was making $$$$$$$$$$
 

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Anja_Nees said:
It’s not at all uncommon for AFL players to blow their cash on sketchy investments. Quite a few got done on forestry schemes in the late 2000s, and some of these notorious ‘property deals’ have ended in tears - ask Nathan Brown how his property investments with Clinton Casey went.
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That forestry/farm land scheme was absolutely shocking. The guys who owned the business I worked for at the time funneled tens of thousands of dollars into it as a means of reducing their tax liability, on a vague idea that particular types of land being bought would achieve that result - but instead the only people who actually had their money safe were the accountants suggesting the idea who took their commission on the sale of the interest in the scheme and moved on.

People will do whatever they think will get them an edge on making or keeping more money, and salespeople know it.

That boss used to complain about the tax code being too complicated, and it is, but he made it worse for himself trying to spend as little as possible to save as much as possible and costing a fortune.

If you're looking for easy access to capital then football players who left school and became rich would be an easy target.
 

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Taylor said:
That forestry/farm land scheme was absolutely shocking. The guys who owned the business I worked for at the time funneled tens of thousands of dollars into it as a means of reducing their tax liability, on a vague idea that particular types of land being bought would achieve that result - but instead the only people who actually had their money safe were the accountants suggesting the idea who took their commission on the sale of the interest in the scheme and moved on.

People will do whatever they think will get them an edge on making or keeping more money, and salespeople know it.

That boss used to complain about the tax code being too complicated, and it is, but he made it worse for himself trying to spend as little as possible to save as much as possible and costing a fortune.

If you're looking for easy access to capital then football players who left school and became rich would be an easy target.
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The idea made perfect sense for footballers - minimise your tax in the next five to ten years while you’re at peak earning capacity and the crops are growing, then get an income stream in retirement.

Ended in horrible failure for most people. I understand a lot of the players are better advised now, and a lot of them basically have their agents give them an allowance from their income, with the rest going towards buying a home and far less speculative investments.
 
Anja_Nees said:
The idea made perfect sense for footballers - minimise your tax in the next five to ten years while you’re at peak earning capacity and the crops are growing, then get an income stream in retirement.

Ended in horrible failure for most people. I understand a lot of the players are better advised now, and a lot of them basically have their agents give them an allowance from their income, with the rest going towards buying a home and far less speculative investments.
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Definitely wasn't just footballers, more than a few Sydney / Melbourne lawyers also ended up with nothing.
 
Twoslabs said:
Yet another surprise idiot footballer wants to get involved in speculative property development despite zero industry experience.
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Or maybe they were just used to the 'property developments' guaranteed returns you get when you are playing on a AFL list.

You know, the 'investments' that do really, really well and the income is outside the salary cap.

Amazing that as soon as you aren't playing those investments just don't perform as well.
 

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Rumour Lingy Goes Bust

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