Posts Tagged ‘ahmed zayat’

By Ray Paulick
 What’s that old expression often repeated in the legal world: He who represents himself has a fool for a client? I think a similar statement can be said of some horse owners: He who makes decisions on where and when his horses should run has a fool for a trainer.

That phrase came to mind, not once, but twice this week when the owners of two of America’s highest-profile Thoroughbreds, Horse of the Year Rachel Alexandra and early Kentucky Derby favorite Eskendereya, made the type of decisions that are better left to their trainers. And the real trainers of these two horses, Steve Asmussen and Todd Pletcher, respectively, are anything but fools. Both are locks to someday be inducted into the National Museum of Racing Hall of Fame.

Jess Jackson struck first when he issued a press release Sunday declaring Rachel Alexandra out of the April 9 Apple Blossom Invitational at Oaklawn Park, less than 24 hours after she was defeated in the New Orleans Ladies at Fair Grounds.

“Yesterday’s race while a disappointment, helped us define Rachel Alexandra’s racing condition,” Jackson said. “While she is healthy, just as I had anticipated, she is not in top form. Therefore, I decided today she will not be going to the Oaklawn Invitational on April 9. Steve and I discussed this fully and we now regret we tried to accelerate her training in order meet the Apple Blossom schedule. We have a whole season before us to help define her greatness. She will tell us when her next race will be.”

The key phrase in the above paragraph is “Therefore, I decided…”

Only a few hours earlier, the Fair Grounds media office sent out the following comments from Asmussen, a two-time Eclipse Award-winning trainer: “We don’t have any negative indications yet today. Like anything, you want to be 100% and if you’re not you go from there. We don’t have any negative this morning other than the loss and the hurt feelings of yesterday. Our main concern is how Rachel feels and her well-being and we’re very pleased with her today.”

Two days later, Ahmed Zayat made a decision to pull his Fasig-Tipton Fountain of Youth winner Eskendereya from an intended start in this Saturday’s Florida Derby and have Pletcher instead send him to Aqueduct for the Wood Memorial on April 3.

“The main issue is timing,” Zayat was quoted in Daily Racing Form as saying. “I’m not really comfortable off the six weeks (the gap between the Florida Derby and Kentucky Derby). If I’m genuine about the Kentucky Derby, I need to give the prep I want to make sure he peaks on the right day.”

Zayat, who has been sued by Fifth Third Bank over alleged delinquency on a $34-million loan and has put his racing stable in Chapter 11 bankruptcy, like Jackson has owned racehorses for only a few years. Apparently, he thinks he knows more about training a Thoroughbred than Pletcher, a four-time Eclipse Award winner.

Earlier in the week, Pletcher was quoted in the Miami Herald saying he thought six weeks between starts was just right for Eskendereya. “He won an allowance (at Gulfstream) six weeks out from the Fountain of Youth,” Pletcher said. “So, six weeks seems like good spacing for him.”

Cynics may be thinking Jackson and Zayat–two owners with immodestly sized egos—might be fibbing about their decisions. In the case of Jackson, the real reason to skip the Apple Blossom could be based more on the winning performance by unbeaten champion Zenyatta at Santa Anita the same afternoon Rachel Alexandra lost. He can’t be blamed for wanting no part of Zenyatta at Oaklawn, and for that I say he’s nobody’s fool.

Zayat’s reason could be entirely different. The beleaguered owner has been entertaining offers to sell all or part of Eskendereya to help satisfy his loan obligations, and it’s possible he wants to finalize a deal before the son of Giant’s Causeway makes his next start.

I hope that’s the case. If Zayat thinks he can train a horse better than Pletcher, he really is a fool.

Copyright © 2010, The Paulick Report

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Investigators with the California Horse Racing Board said they will take no action at this time against owner Ahmed Zayat, who in documents related to his Zayat Stables’ Chapter 11 bankruptcy filing said he loaned more than $600,000 to convicted bookmakers Michael and Jeffrey Jelinsky and other family members. The New York Times first reported the loans last week. The Jelinsky brothers were convicted of felony bookmaking charges last year after a federal investigation uncovered an extensive illegal betting operation they ran out of Las Vegas.

Two other states, Kentucky and New York, are said to be investigating Zayat’s relationships with the Jelinskys.

The CHRB explained, somewhat curiously, that the loans were made before the Jelinskys were convicted of a felony. But the regulation that applies to CHRB licensees says nothing about “convicted” only “known” bookmakers.

Here is the language of CHRB Rule No. 1902, Conduct Detrimental to Horse Racing.

“No licensee shall engage in any conduct prohibited by this Division nor shall any licensee engage in any conduct which by its nature is detrimental to the best interests of horse racing including, but not limited to: (a) knowing association with any known bookmaker, known tout, or known felon, (b) indictment or arrest for a crime involving moral turpitude or which is punishable by imprisonment in the state or federal prison, when such indictment or arrest is the subject of notorious or widespread publicity in the news media, and when there is probable cause to believe the licensee committed the offenses charged, (c) solicitation of or aiding and abetting any other person to participate in any act or conduct prohibited by this Division.

Did the CHRB investigator read the CHRB’s own rules?

Read it at Bloodhorse.com

Then come back to the Paulick Report and let us know what you think

- Ray Paulick

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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The saga of Ahmed Zayat’s Zayat Stables and the Fifth Third Bank that sued the stable took an interesting turn over the weekend when Eskendereya ran away and hid from nine rivals in the Fasig-Tipton Fountain of Youth Stakes at Gulfstream Park.

Just as Fifth Third was pushing for the authority to take over and manage the Zayat Stable assets, Eskendereya, one of those assets, exploded in value with his overpowering 8 1/2-length victory that vaulted him to the top of numerous rankings of Kentucky Derby contenders, including my own. At this stage of the dispute, it would be difficult to convince a bankruptcy court judge that a bank would do a better job managing a racing stable than the team that Zayat has assembled over the last several years, when he has ranked among the leading owners in North America, retired two top stallion prospects to the breeding shed (multiple Grade 1 winner Zensational and Kentucky Derby runner-up Pioneerof the Nile) and developed a leading candidate for the 2010 Kentucky Derby. The bank most recently dropped their demand for a trustee to be appointed to manage the assets.

So Zayat, despite filing for Chapter 11 bankruptcy, holds some pretty good cards in his hand right now, led by the ace of the stable, Eskendereya, whose value probably increased tenfold with that Fountain of Youth victory.

Under normal circumstances, offers from stallion farms would start flooding in on a horse like Eskendereya, considering how he dismantled a good field and the pedigree he carries (Giant’s Causeway out of a Seattle Slew mare). But if the horse is worth $5 million or more and Zayat decides to sell all or part of him, how much of a dent would that put on the reported $34 million he is said ot owe Fifth Third? Probably not enough to convince Zayat to sell, especially given his personal quest to win big races like the Kentucky Derby. Besides, if Eskendereya runs the table and wins the Kentucky Derby and Triple Crown (and we’re not making that prediction), he’s probably worth tens of millions of dollars and closer to bailing Zayat out in one fell swoop.

On the other side of this rather expensive coin is the grim reality that what goes up also can come down. If Eskendereya is worth $5 million today after a Grade 2 victory, what would he be worth if he throws in a clunker next time out and fails to hit the board? Answer: a lot less than what he is worth today.

Zayat is a gambler, both at the betting windows and in the auction ring. He’s gambled tens of millions of dollars that he can increase the value of his bloodstock assets, and I would bet that he will not be willing to sell a cherished property like Eskendereya as long as there is more upside available. His track record in the horse business suggests he does not sell on the way up.

I think it goes without saying Fifth Third would like Zayat to monetize some assets, but he is currently holding the cards. 

Click here for Ray’s Under The Raydar segment

Following is my latest top 10 horses for the Paulick Derby Index:
 
1. Eskendereya. Leader of Todd’s Squad, perhaps the strongest group of horses multiple Eclipse Award-winning trainer Todd Pletcher has ever had in the run-up to the Kentucky Derby, where his futility is well documented. Pletcher will win more than one Derby before his career is over.

2. Lookin At Lucky. Still awaiting the 2009 2-year-old champion’s seasonal debut. Bob Baffert trained the son of Smart Strike cautiously last weekend when rain hitouthern California. If he has no prep on dirt prior to the Kentucky Derby, this one will be tough to gauge.

3. Rule. Pletcher has some time on the sidelines, thanks to the suspension he received as a result of a positive test at the 2008 Breeders’ Cup. He can use the down time to map out a road to the Derby for his various candidates, including this son of Roman Ruler, who has looked good beating up on relatively weak competition.

4. American Lion. Assuming Eoin Harty will keep Tiznow colt on synthetic surfaces until testing him at Churchill Downs. At this stage he looks to be part of a heavy speed brigade among the various contenders.

5. Dave in Dixie. Can’t wait to see this Dixie Union colt’s next start for trainer John Sadler. Finished with a tremendous burst in deep stretch in the Robert Lewis Stakes and figures to improve with racing.

6. Discreetly Mine. Pletcher-trained colt fits the profile of a Kentucky Derby winner in so many ways: a lot of racing experience at two, strong performances in graded stakes, and a pedigree (Mineshaft out of a Private Account mare) that makes you think distance is no problem.

7. Conveyance. Hard to knock an unbeaten horse, and this Indian Charlie colt has been highly regarded from the start; he sold for $240,000 as a yearling and probably brought 10 times more than that when he was purchased privately by Zabeel Racing earlier this year.

8. Dublin. Hopeful winner at Saratoga last summer returned to good form in the Southwest Stakes at Oaklawn, chasing Conveyance to the wire while making up a lot of ground in the final eighth of a mile. That suggests the D. Wayne Lukas-trained son of Afleet Alex will be that much tougher when the distances stretch out.

9. Buddy’s Saint. Son of Saint Liam went from big time to small time in no time with his ninth-place finish in Fountain of Youth. But considering all the trouble the Nashua and Remsen Stakes winner had around the first turn when he was bounced around after rushing up along the rail into a hole that didn’t exist, it’s easy to see how the colt may have gotten discouraged. It’s the kind of race you just draw a line through and hope it wasn’t a reflection of his true ability.

10. Caracortado. Just like with Conveyance, it’s tough to knock perfection. He’s had relatively soft competition until last out in the Robert Lewis, when son of Cat Dream got the perfect trip behind dueling leaders

In perhaps the most extensive piece written about the Zayat bankruptcy, especially in a non-industry publication, writer Hugh Morley gets up close and personal with the controversial owner. Among other things, Zayat insists that he wants to pay the Fifth Third bank but not on the backs of depressed value for his assets (horses).

"God forbid. I want to pay them. But I want to pay them when I am supposed to pay them. I am a victim of very bad people. I am a victim of a very bad environment."

Read it at NorthJersey.com

Then come back to the Paulick Report and let us know what you think

- Bradford Cummings

Jason Shandler of the Blood-Horse wrote today about Thorn Song’s apparent second chance at life. Quoting an unknown source that he had ‘an almost zero chance’ at survival, Shandler goes on to describe the recovery ‘thanks to breakthrough stem cell therapy’.

This comes on the heels of the revelation that Ahmed Zayat had cashed in on a $2.75 million insurance policy for the Grade 1-winning son of Unbridled’s Song despite his still being alive. According to veterinarian Dr. Doug Herthel, "Mr. Zayat was devastated. He called almost daily for two months for updates and when we told him (about putting Thorn Song down) he was actually crying on the phone. I’ve had thousands of clients and you could tell he genuinely cared about this horse."

Is this a truly remarkable turnaround from death’s doorstep or is the Blood-Horse trying to back up Dan Liebman’s awkward contention that racing needs more people like Zayat?

Read it at the Blood-Horse

Then come back to the Paulick Report and let us know what you think

- Bradford Cummings

By Ray Paulick
Should character and rules violations come into play when votes are cast for honors such as horse racing’s Eclipse Awards or Hall of Fame? My belief is that they should.

That question came to mind yesterday when Daily Racing Form first reported on the lawsuit filed by a bank against Ahmed Zayat, whose Zayat Stables was the leading owner in North America in 2008 by earnings and currently ranks third in that category. The bank alleges Zayat owes more than $34 million on equine-related loans.

Zayat wasn’t even one of the three finalists in 2008 Eclipse Award voting in the outstanding owner category. The award went to Frank Stronach’s Stronach Stables, which edged IEAH Stables by one vote, with Godolphin Racing third.

In light of the lawsuit (which, I need to remind readers, is simply the bank’s allegation and does not tell the other side of the story), it will be interesting to see if Eclipse voters again shun Zayat, whose stable earnings are within $300,000 of the leader, the Juddmonte Farms of Saudi Arabian Prince Khalid Abdullah. Zayat Stables has also had a very good year in American Graded Stakes competition, with six individual American Graded Stakes winners. Only the two entities controlled by Dubai’s Sheikh Mohammed have more: Godolphin and Darley have nine AGS winners apiece.

One of Zayat’s biggest stars, Zensational, is a leading contender for champion male sprinter. That begs another question: should a horse be punished by real or perceived misdeeds of his connections? That’s a trickier one to answer.

In Zensational’s case, I don’t thinkan owner’s potential financial problems or character should be a factor in the vote. However, if there are horses trained by individuals who have experienced numerous medication violations (and that isn’t the case with Zensational), I think it’s fair game to bring that into the thought process.

That brings us to Rachel Alexandra, who is a cinch to win the Eclipse Award as champion 3-year-old filly and, in my mind, remains the frontrunner for Horse of the Year over the unbeaten Zenyatta. (Full disclosure: I don’t have a vote for Eclipse Awards, but if I did I would vote for Zenyatta over Rachel Alexandra in a very difficult decision.)

Rachel Alexandra is trained by Steve Asmussen, who is fighting a six-month suspension in Texas for a medication violation detected by post-race testing in a horse he trains and that ran at Lone Star Park in 2008 (click here for details). If it was Asmussen’s first violation, I think voters could easily overlook it. But as the Paulick Report disclosed in June 2008, Asmussen has a long list of rules violations over the last 20 years, including a number of medication positives.

Would Asmussen’s lengthy rap sheet be a factor in how I would vote? Yes, it would. Perhaps it would be enough of a factor to tilt the scales in the Rachel Alexandra vs. Zenyatta Horse of the Year vote.

I also believe it’s fair game to look at a trainer’s record of violation when casting a ballot for outstanding trainer. Asmussen won his first Eclipse Award in this category for 2008, and he’s almost certain to repeat this year. But if I had a vote, it would be very difficult for me to cast a ballot in favor of Asmussen over someone like John Shirreffs, the trainer of Zenyatta. In a search of the California Horse Racing Board database, Shirreffs comes up with zero rulings for medication violations.

Character and a track record of following medication rules should matter when we take time to honor the best in Thoroughbred racing.
 

By Ray Paulick
It should come as no surprise that Sheikh Mohammed is the leading owner of American Graded Stakes winners in 2009 through his Darley and Goldophin racing stables. The ruler of Dubai has invested far more money in his international racing and breeding operation than anyone else in the world, and his American stable has performed exceedingly well this year.

If the Darley and Godolphin Stables are combined, Sheikh Mohammed would be the leading owner by money won, according to Equibase (click here for the list), with earnings of just over $7.5 million. However, they are separate stables and are listed separately in the standings, Darley ranking third behind Mike Gill and Zayat Stables and Godolphin 12th.

But there are a few more American Graded Stakes on the racing calendar, starting this weekend with the Breeders’ Cup. When all the dust settles, I anticipate Darley and Godolphin to have an even more dominating position in the American Graded Stakes standings than they do today.