PLENTY OF OFFERS, BUT NO DEAL ON ESKENDEREYA
By Ray Paulick
Bradley Weisbord, recently named the finance and stallion manager for Ahmed Zayat’s financially troubled Zayat Stables, told the Paulick Report no deal has been struck to sell all or any portion of Fasig-Tipton Fountain of Youth winner Eskendereya, a leading candidate for this year’s Kentucky Derby.
“Mr. Zayat has said he is in this business to operate it as a business,” Weisbord said,. “and he is pursuing offers. There have been numerous parties involved interested in anything from 10% to 100% of the horse.”
Eskendereya won the Feb. 20 Fountain of Youth by 7 1/4 lengths, his third victory in five starts. The margin and ease of victory, combined with huge numbers from speed figure calculators, put the son of Giant’s Causeway at the top of many Kentucky Derby lists. He was a $250,000 Keeneland September yearling graduate, sold by Peter O’Callaghan’s Woods Edge Farm, where he was raised. Sanford Robertson bred him in Kentucky. Eskendereya is out of the Seattle Slew mare, Aldebaran Light,
One bloodstock agent who spoke with the Paulick Report on the condition of anonymity, said he made inquiries about Eskendereya with Zayat Stables associates and was told it would take more than $5 million for a half-interest in the colt. Weisbord wouldn’t confirm any prices being offered.
Zayat Stables was sued by Fifth Third bank for allegedly being delinquent on loans totaling $34 million, and the stable countersued the bank. Zayat Stables subsequently filed for Chapter 11 bankruptcy and is now being investigated by at least two racing commissions for possible ties Zayat had with convicted bookmakers Michael and Jeffrey Jelinsky, to whom he said he made loans totaling more than $600,000. According to sources, one of the Jelinsky brothers attended the 2008 Kentucky Derby post position draw in Louisville as Zayat’s guest.
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Tags: ahmed zayat, Aldebaran Light, bradley weisbord, Eskendereya, fasig-tipton, Fountain of Youth, Jeffrey Jelinsky, kentucky derby, Michael Jelinsky, Paulick Report, Peter O'Callaghan, Sanford Robertson, seattle slew, Woods Edge Farm, zayat stables
March 4th, 2010 at 8:24 pm
It’s really quite simple: Zayat is pricing the horse unrealistically, which is why no deal has been made.
March 4th, 2010 at 8:53 pm
I think Zayat is looking for 34 million…..
March 4th, 2010 at 9:06 pm
Exactly 34 million dollars it will be.
March 5th, 2010 at 2:56 am
Any sale would have to be approved by the Bankruptcy Court and the US Trustee would have to have no objection to the sale price. I suspect that the Bank, as the secured creditor, would be driving any negotiations on the sale of horse because its part of the bank’s collateral. Zayat doesn’t have alot of discretion on what to do because the bank is an 800 pound gorilla. The bank may feel that it would get more value to wait right before the Derby to sell the horse. Thats when Eskendereya’s value would be highest. The bank better hope that the horse stays healthy and sound.
March 6th, 2010 at 2:54 pm
It isn’t far enough along in the legal proceedings for the bank to be driving the negotiations. They haven’t won their lawsuit, haven’t secured an injunction, etc. etc.
The bank filed suit to try to force Zayat to either put up more cash or allow it to sell its equine collateral because he’s in default on a loan. Zayat countersued, alleging predatory lending practices, and then filed for bankruptcy protection. The lawsuit, countersuit and bankruptcy are in their very early stages so the bank does not have control over the sale of Eskendereya at this point.
Zayat put up 203 horses as collateral for over $30 million in loans, Eskendereya is but one of those horses. The horse was recently appraised at between $6 and $8 million, and that was after he won the FOY.
The bank would likely sell the horse fast for his appraised value especially since they have 202 others to help recoup their losses (and that’s assuming they win their lawsuit). I’m fairly certain Zayat is driving this unrealistic sale price.
March 8th, 2010 at 1:55 am
please anyone buy this horse so we don’t have to root against horse with his dirty evil smug oner…miss smart jones funny cide afleet alex street sense and barbaro’s owners no zayat!!!