Comments on: NO SALE IN CURLIN MINORITY INTEREST

By: Legal Knievel: Jumping Regulatory Gaps « The Thoroughbred Brief

Legal Knievel: Jumping Regulatory Gaps « The Thoroughbred Brief — Thu, 04 Dec 2008 18:51:23 +0000

[...] for feeding me information from the real world). From Judge Crittendon’s unsurprising ruling against the sale of the 20% minority interest in Curlin, to Judge Ishmael’s reprimand of Jess Jackson’s [...]

By: Ray Paulick

Ray Paulick — Mon, 01 Dec 2008 20:17:06 +0000

Sew….Some experts value syndicated horses (which Curlin is not) on a multiple of 350-400 times the initial stud fee (some as high as 500 times stud fee if the horse is also going to stand in the Southern Hemisphere).

As for the management fees, Jackson attorney Richard Getty said he understood that a significant amount would be spent on advertising and marketing Curlin at stud. If that’s the case, we sincerely hope Lane’s End will be promoting Curlin on the Paulick Report!

By: Sew

Sew — Mon, 01 Dec 2008 19:54:02 +0000

What do you think the value should be? Didn’t Afleet Alex syndicate for $39 million with a stud fee of $40,000. I’m not familiar with how value/synication value/stud fee are related. Anyone else have thoughts?

Also, doesn’t $1 million to manage 20% of Curlin for 18 months seem like a lot?! So total management cost for Curlin for that period would be $5 million. Are the Lane’s End fees included or do they get their money based on percentage of stud fee? I would guess the $5 million would include all monies paid to Lane’s End. Just curious how these deals work.

By: Ray Paulick

Ray Paulick — Mon, 01 Dec 2008 19:34:28 +0000

Superfecta…What happens to the ownership of Einstein and any other horses in Midnight Cry (or Tandy LLC) apparently is now up to Angela Ford, the attorney for the class-action plaintiffs. I’ve been told she has at least a couple of different options, including something akin to foreclosure proceedings.

Complicating Einstein’s future are licensing issues of the owners: some states apparently will not license Cunningham and Gallion. He’s a top-class horse as evidenced by Friday’s win in the Clark and Churchill and you have to think he’d been invited to Dubai for the World Cup or the turf race.

By: Barbara

Barbara — Mon, 01 Dec 2008 19:14:07 +0000

I don’t see why they have to resolve the 20% interest other than that would enable Jackson to sell or syndicate the horse - let the phen fen victims and the jailbirds fight over the 20% of stud fee revenue and subtract the 20% expenses for Curlin from their share.

Einstein would be signed sealed and delivered to Dubai by now without the legal entanglement of his ownership - there is a silver lining in every cloud, right?

By: Amelia

Amelia — Mon, 01 Dec 2008 19:03:34 +0000

I think that there is a lot more to the case involving Gallion and Cunningham than most people know. Their case is still on appeal; it’s a little early to be calling them crooks and thieves. Also, they were the original owners of Curlin and have done nothing to impede his career. It’s quite easy to judge things from media coverage. It’s quite different to judge it knowing all the facts.

By: Superfecta

Superfecta — Mon, 01 Dec 2008 18:43:18 +0000

Interesting. I’m still curious about how their ownership of Einstein will eventually be resolved. I’d be happy to take him off their hands.

By: Faith

Faith — Mon, 01 Dec 2008 18:10:15 +0000

I like the gamble taken by Regard and Ford. It will be neat to see if it pays off. I say it does.

By: Rchard Coreno

Rchard Coreno — Mon, 01 Dec 2008 17:58:10 +0000

I wonder if the thieves were not as politically-connected as Gallion and Cunningham that this situation would have even reached this point. Justice is blind only for those with a bankroll and/or attorneys who can somehow paint crooks as victims on a canvas that is being presented to a judge who obviously was looking for the easy way out of this case.

Lost in all of this is the class-action plaintiffs, who seem to be riding in the caboose and seem to be on the line to paying years and years of additional attorney fees and no end on the horizon. Hopefully, they will at least get a horse shoe from Curlin, because they are probably only going to keep seeing attorney bills in this mess.

By: Noelle

Noelle — Mon, 01 Dec 2008 17:40:15 +0000

As Mr. Bumble said, “the law is a ass…”