Posts Tagged ‘midnight cry stable’
Friday, September 4th, 2009
By Ray Paulick
UPDATED (EIGHTHÂ AND NINTHÂ PARAGRAPH)
There are a lot of things Frank Stronach does that I don’t like, most of them involving the structure of his public companies and how he has run Magna Entertainment into bankruptcy and many of the company’s racetracks into the ground. But when word got out that Stronach was buying multiple Grade 1 winner Einstein from the Midnight Cry Stable of William Gallion and Shirley Cunningham, the two attorneys convicted of wire fraud and conspiracy for pilfering millions of dollars from a class-action lawsuit settlement, I could only applaud the move. When I later read that Stronach said he would retain Helen Pitts as trainer of the Brazilian-bred 7-year-old, well, I started getting this warm and fuzzy feeling about ol’ Frank.The sale of Einstein probably wasn’t an easy one, but it was in the best interests of racing to get the horse as far away from the two convicted and jailed felons as soon as possible, especially since he is racing in Sunday’s $1-million Pacific Classic at Del Mar. The sale apparently had to be approved by a judge and the attorney for the plaintiffs in a civil lawsuit filed by the people Gallion and Cunningham represented in the class-action case involving the diet drug fen phen.
Complicating matters is the fact Einstein is not a young horse, is a son of the unsuccessful and unfashionable Buckaroo stallion Spend a Buck, a front-running Kentucky Derby who may be best remembered for skipping the Preakness to go after a big bonus in New Jersey. Einstein is expected to be a very difficult sell at stud to commercial breeders. Stronach, with a huge broodmare band, is perfectly positioned to support Einstein in a way that few if any other stallion farms could, and he figures to give Einstein every chance possible to succeed as a stallion.
Let’s put it this way. I’ll bet Stronach didn’t have to climb over any other major Kentucky stallion farm owners to buy the horse.
Price of the transaction was not disclosed; the horse was appraised by two bloodstock agents, who apparently testified in a recent court hearing concerning the sale of Einstein. There were no media members present during the hearing, and no one involved in the hearing would provide details. So it’s anyone’s guess as to the appraised value of Einstein or what Stronach ultimately paid.
Given the current uncertainty in the bloodstock market, and the recent news that the North American foal crop is expected to decline 20% from 2008 to 2010, it’s not an easy time to sell any new stallion, much less one that lacks commercial appeal. Valuations that once ran as high as a multiple of 350-to-400 times the first-year stud fee are non-existent today, except perhaps for a farm like Sheikh Mohammed’s deep-pocketed Darley. If Einstein entered stud with a $7,500 or $10,000 stud fee, my best guess is that his estimated sale price would be in the $1.8 million-$2 million range.
Einstein, a winner of 11 of 27 starts and just over $2.7 million, has won seven stakes, none before his 4-year-old season, when he captured the Grade 1 Gulfstream Park Breeders’ Cup Stakes. He won the Gulfstream Park Turf Stakes and Woodford Reserve Turf Classic at 6 and this year’s Santa Anita Handicap along with a repeat of the Woodford Reserve Turf Classic at 7 to round out his current Grade 1 resume.
UPDATED: The fact he won the Santa Anita Handicap on that track’s Pro Ride synthetic surface makes Einstein an interesting possibility for the $5 million Breeders’ Cup Classic. According to Dora Delgado, senior vice president of nominations and on-site operations for hte Breeders’ Cup, Einstein could be made fully eligibleto the Breeders’ Cup through the Horses of Racing Age nomination at a cost of $200,000. Along with $150,000 in entry and starting fees for the Classic, the total would be $350,000, far less than the previous supplementary fee for the Classic, which would cost $750,000, or 15% of the purse. The Horses of Racing Age nominations began in 2006 and was reduced last December from $250,000 to $200,000 for the offspring of unnominated stallions and from $150,000 to $100,000 for the offpsring of stallions nominated to the Breeders’ Cup, according to Delgado.
The $2.7 million winner’s share of the Classic, minus the Horses of Racing Age, entry and starting fees, would probably be equal to or in excess of what Stronach paid for Einstein. Another possibility this fall would be the Japan Cup Dirt, a $2.8 million race run clockwise at Hanshin race course whose winner’s share is about $1.4 million. Then, of course, if Stronach chose to keep Einstein in training next year at 8, he would be a serious contender for the $10 million Dubai World Cup.
If he opts to retire Einstein to his Adena Springs Farm in 2010, it would be similar to when Stronach stood the two-time Santa Anita Handicap winner that he campaigned, Milwaukee Brew, following his 6-year-old season. A son of Wild Again, Milwaukee Brew, who like Einstein was unraced at 2 and a long-fused runner, stood for $15,000 his first season. He has since moved to Adena Springs South in Florida and ranks fourth among third-crop sires nationally. He’s been a bigger success producing solid runners than sale ring candidates. Milwaukee Brew’s 2009 fee was $7,500.
By purchasing Einstein for eventual retirement to Adena Springs, Stronach will be adding to the stallion pool a horse who has proven himself on dirt, turf and synthetic tracks over a distance of ground. The lack of commercial appeal he is likely to have should be good news for breeders who are more interested in producing a racehorse than a sales horse from a moderate stud fee.
Stronach’s purchase of Einstein could, in a few years, have him looking like a genius.Brilliant, I say.
Copyright © 2009, The Paulick Report
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Tags: adena springs, adena springs south, breeders' cup classic, dubai world cup, einstein, Frank Stronach, helen pitts, japan cup dirt, Magna Entertainment, midnight cry stable, milwaukee brew, Paulick Report, pro-ride, Ray Paulick, shirley cunningham, spend a buck, wild again, william gallion
Posted in Breeding, Stallions | 7 Comments »
Monday, November 24th, 2008
By Ray Paulick
The retirement of reigning Horse of the Year Curlin to Lane’s End Farm may be one of the more unusual stallion contracts with which the Versailles, Ky., farm’s owner, William S. Farish, has been involved. Farish said as much in an interview with the Paulick Report, although he would not go into details of the deal that was announced on Nov. 21.
Farish confirmed that Lane’s End did not purchase any interest in the Smart Strike 4-year-old colt, who will stand for $75,000 live foal as the property of Jess Jackson and the Midnight Cry Stable – at least until Midnight Cry’s 20% ownership interest is resolved in a legal battle that goes back to a 2001 diet-drug class-action settlement. The case revolved around the legal fees charged by plaintiff attorneys William Gallion and Shirley Cunningham, among others. The two men, who raced under the Midnight Cry stable and bought Curlin as a yearling for $57,000 in 2005, lost a $42 million judgment in a civil suit and face retrial on criminal charges of mail fraud after a previous trial ended in a hung jury. A third defendant was acquitted.
A court-ordered receiver has been charged with selling Midnight Cry’s 20% interest in Curlin, but the fair market value of the horse is in dispute. At a recent hearing, bloodstock consultant Ric Waldman estimated Curlin’s total value at $20 million, meaning Midnight Cry’s interest is worth $4 million – the amount Jackson and his wife, Barbara Banke, offered to buy it. Andre Regard, an attorney for Midnight Cry, said the figure is too low.
Because of the legal complications, it’s believed Jackson was unable to convey any breeding rights to Lane’s End, a standard part of most stallion contracts that gives the farm standing a horse a minimum of four to six annual breeding rights. In lieu of those rights, the assumption is that Jackson is paying Lane’s End an annual management fee, in addition to standard marketing and board fees. Unless the management fees are linked to Curlin’s stud fee (i.e., they increase if his stud fee increases), Lane’s End will not enjoy the potential upside it would if the farm owned shares or a percentage of the horse, or if the farm received a specific number of annual breeding rights.
Regard said he has requested a copy of the stallion contract from Jackson but has yet to receive it. He suggested the details of the contract could help establish Curlin’s true value. Regard contends that the $20-million appraised value is too low, based on the multiple of 267 times the initial $75,000 stud fee. Some stallions are valued based on a multiple of 400 (or even as high as 500) times the initial stud fee, Regard said.
Farish admitted the negotiations over Curlin were “difficult” because of the legal challenges. That Jackson and Farish ended up business partners on the horse is viewed by some as ironic, in light of Jackson’s crusade to reform the Thoroughbred auction business and his push to have bloodstock agents licensed. It is widely believed the politically-connected Farish used his clout in Kentucky’s legislative circles to restrict reforms and block the mandated licensing of agents.
Curlin was retired following his fourth-place finish in the Breeders’ Cup Classic, the only time in 16 career starts he finished worse than third. North America’s all-time leading earner, with $10,501,800 won in the United States and Dubai, will make a final public appearance this Saturday at Churchill Downs before joining his sire, Smart Strike, at Lane’s End.
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Tags: andre regard, annual breeding rights, barbara banke, Curlin, fen-phen, jess jackson, Lane's End, midnight cry stable, Ric Waldman, shirley cunningham, smart strike, thoroughbred auction reform, Thoroughbred breeding, thoroughbred stallions, Will Farish, william gallion, William S. Farish
Posted in Breeding, Curlin, Stallions | 1 Comment »
Wednesday, November 19th, 2008
By Ray Paulick
Lane’s End Farm is expected to announce that reigning Horse of the Year Curlin will enter stud at the Versailles, Ky., farm in 2009 for a live foal stud fee of $75,000, the Paulick Report has learned. Lane’s End is owned by William S. Farish, vice chairman of the Jockey Club and former ambassador to Great Britain for President George W. Bush.
Jess Jackson owns 80% of the son of Smart Strike—Sherriffs Deputy, by Deputy Minister, with the other 20% owned by the Midnight Cry Stable of disbarred attorneys Shirley Cunningham and William Gallion. That share has been the focus of a complicated legal battle resulting from a $42-million judgment against Cunningham and Gallion in a civil case. The two also face criminal charges.
Jackson and wife Barbara Banke have offered to buy Midnight Cry’s 20% for $4 million, based on an appraisal by bloodstock expert Ric Waldman that set a $20-million fair market value on Curlin. While Curlin may have been insured for an amount in excess of $40 million, Waldman’s appraisal took into account the current global economic crisis and recent trends in the bloodstock market. The just-concluded November breeding stock sale at Keeneland resulted in a 46% decline in gross revenues.
Jackson announced Nov. 15 that Curlin would enter stud in Kentucky in 2009, though he did not name a farm. At the time, he said various offers were being considered, and also indicated Curlin could become the first stallion to stand at the Stonestreet Farms in Lexington that he owns. The late-season announcement, made after matings for many broodmares already have been planned, may also have contributed to Waldman’s appraisal, which Andre Regard, an attorney for Gallion and Cunningham, said was below the horse’s true value.
No decision is expected on the Midnight Cry share of Curlin prior to a Dec. 1 court date in Franklin County, Ky. If a judge rules that the share should be sold to Jackson for $4 million, an appeal could extend the legal battle well into 2009.
It is believed Gainesway Farm was a “finalist” in the bidding for Curlin’s stud services. Jackson owns a large share of dual 2005 Classic winner Afleet Alex, who stands at Gainesway, owned by South African Graham Beck and run by his son, Antony. Jackson and the Beck family are both involved in the wine business, Jackson in California as the owner of Kendall-Jackson vineyards and the Becks primarily in South Africa. Jackson sells many of his horses through Gainesway and Taylor Made Sales Agency, which is also believed to have been a finalist to stand Curlin. Jackson also is part owner of 2004 Horse of the Year Ghostzapper, who stands at Adena Springs. It isn’t known whether Adena Springs, owned by Frank Stronach, actively recruited Curlin.
With a fee of $75,000, Curlin would be the highest-priced first-year stallion entering stud in Kentucky in 2009. Kentucky Derby and Preakness winner Big Brown will stand at Three Chimneys Farm for $65,000, the same amount as Coolmore/Ashford’s multiple European Group 1 winner Henrythenavigator, who finished second to Raven’s Pass in the Breeders’ Cup Classic in which Curlin was fourth.
“Curlin has proven himself across two continents with 16 starts, the honor of 2007 Horse of the Year and the greatest North American money-earner in racing history,” Jackson said in the Nov. 15 announcement that Curlin would enter stud in 2009. “He always gave it his all and has done everything we have asked of him. I am proud to announce that he will start a new career in 2009 and contribute his soundness, stamina, durability and athleticism to the breed. I am looking forward to seeing his foals compete and possibly exceed his unequaled racing record.”
At the time of the announcement, Jackson said he would consider one more race in 2008 for Curlin if “an appropriate venue and purse are offered.” Curlin has been ruled out of the Clark Handicap at Churchill and Cigar Mile at Aqueduct, the two most likely races for him, so it’s extremely doubtful he will run again.
Curlin, who began his career under the care of Helen Pitts and was transferred to trainer Steve Asmussen after breaking his maiden at Gulfstream Park early in 2007, retires with record earnings of $10,501,800. He won 11 of 16 starts, with two seconds and two thirds. He won seven Grade 1 races: the Breeders’ Cup Classic, Dubai World Cup, consecutive runnings of the Jockey Club Gold Cup, Woodward, Preakness and Stephen Foster Handicap. Bred in Kentucky by Fares Farm, he sold for $57,000 at the Keeneland September yearling sale. Jackson, Satish Sanan and George Bolton bought at 80% interest in Curlin through bloodstock agent John Moynihan for about $3 million after the colt’s maiden win. Jackson eventually bought Sanan and Bolton’s interests.
Curlin’s sire, Smart Strike, stands at Lane’s End for $150,000. Also joining the 2009 roster at Lane’s End is War Pass, the 2007 2-year-old male champion and winner of the Breeders’ Cup Juvenile who will stand for $30,000 live foal.
Kevin McGee, legal counsel for Jackson’s Kendall-Jackson Vineyards in California, would neither confirm nor deny that a deal with Lane’s End was imminent. Attempts to reach Will Farish were unsuccessful. Bill Farish, son of the Lane’s End owner, said he could not comment on the matter.
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Tags: adena springs, afleet alex, andre regard, ashford, barbara banke, Big Brown, Bill Farish, cigar mile, clark handicap, coolmore, coolmore/ashford, Curlin, dubai world cup, fares farm, Frank Stronach, gainesway, gainesway farm, george bolton, ghostzapper, helen pitts, henrythenavigator, horse of the year, horse of the year curlin, Horse Racing, jess jackson, jockey club gold cup, john moynihan, Keeneland, keeneland november breeding stock sale, kevin mcgee, Lane's End, midnight cry stable, Paulick Report, Ray Paulick, Ric Waldman, satish sanan, shirley cunningham, smart strike, steve asmussen, stonestreet farms, taylor made farm, taylor made sales agency, Thoroughbred industry, thoroughbred stallions, war pass, Will Farish, william gallion, William S. Farish
Posted in Breeding, Curlin, Horse Racing, Racing Greats, Stallions | 10 Comments »
Sunday, November 16th, 2008
By Ray Paulick
Curlin will be retired to stud in 2009 to a yet-to-be-determined farm and his racing career is over unless “an appropriate venue and purse are offered" for one more race in 2008, the reigning Horse of the Year’s majority owner Jess Jackson said.
In a press release distributed late Saturday night, Jackson said offers from various stallion farms will be considered but that the son of Smart Strike out of Sheriff’s Deputy, by Deputy Minister, could end up at Jackson’s Stonestreet Farms, which currently does not stand any stallions.
All inquiries for breeding seasons to Curlin for qualified mares should be directed to Stonestreet Farms director Lesley Howard (e-mail address Lesley.Howard@stonestreetfarms.com, or by calling 859 244-2306).
Still unresolved is a 20% ownership interest in Curlin that has been tied up in a legal case involving his original owners, William Gallion and Shirley Cunningham of Midnight Cry Stable, who sold 80% of Curlin to Jackson, Satish Sanan and George Bolton after the colt won his maiden race. Jackson later bought out the interests of Sanan and Bolton, but the Midnight Cry portion was put under the control of a court-appointed receiver last year after Gallion, Cunningham and another attorney were slapped with a $42-million judgment for their handling of a diet drug class-action lawsuit.
Curlin, the richest North American-trained horse in history with earnings of $10,501,800, will be kept in training for one more potential race in 2008, though in a report in the New York Times Jackson ruled out a run in the Dec. 7 Japan Cup Dirt because of quarantine complications. He also told the Times he plans to breed at least 20 of his best mares from a total of over 100 that Stonestreet Farms maintains.
“If an appropriate venue and purse are offered, we would consider one more race in 2008 for Curlin,” Jackson said in a statement.
“Curlin has proven himself across two continents with 16 starts, the honor of 2007 Horse of the Year and the greatest North American money-earner in racing history,” he continued. “He always gave it his all and has done everything we have asked of him. I am proud to announce that he will start a new career in 2009 and contribute his soundness, stamina, durability and athleticism to the breed. I am looking forward to seeing his foals compete and possibly exceed his unequaled racing record.”
Curlin’s Accomplishments:
- 2007 Horse of the Year.
- Greatest North American money-earner in racing history with earnings of $10,501,800.00
Major wins:
2007 Preakness Stakes
2007 Jockey Club Gold Cup
2007 Breeders’ Cup Classic
2008 Dubai World Cup
2008 Jockey Club Gold Cup
Race Record:
2007 2008
Gulfstream Park Maiden Race — First
Rebel Stakes — First
Arkansas Derby - First
Kentucky Derby - Third
Preakness Stakes - First
Belmont Stakes - Second
Haskell Invitational - Third
Jockey Club Gold Cup - First
Breeders’ Cup Classic - First
Jaguar Trophy Handicap - First
Dubai World Cup - First
Stephen Foster Handicap - First
Man o’ War Stakes (turf)- Second
Woodward Stakes - First
Jockey Club Gold Cup — First
Breeders’ Cup Classic (synthetic track) — Fourth
Copyright © 2008, The Paulick Report
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Tags: Curlin, curlin retired, curlin retired to stud, curlin to retire, eclipse award, george bolton, horse of the year, Horse Racing, japan cup dirt, jess jackson, lesley howard, midnight cry, midnight cry stable, Paulick Report, Ray Paulick, richest thoroughbred, satish sanan, sheriff's deputy, shirley cunningham, smart strike, streetstreet farms, william gallion
Posted in Curlin, Racing Greats, Uncategorized | 12 Comments »
Wednesday, June 18th, 2008
A spokesman for the New York State Racing and Wagering Board said Wednesday that 2007 Horse of the Year Curlin would not be allowed to race in New York until all of his owners are licensed in the state. The license for one of the partners in the Midnight Cry Stable that owns 20% of Curlin, jailed attorney Shirley Cunningham, expired last August. Cunningham has been in custody since August while being tried on charges of conspiracy to commit wire fraud in a case involving a class-action lawsuit over a diet drug. One of the other defendents in the case is William Gallion, another partner in Midnight Cry.
The case is expected to go to the jury on Friday.
The licensing issue came to light days before the Belmont Stakes, when Einstein, one of the top runners in the grass division this year, was pointed for the Manhattan Handicap on the Belmont undercard June 7. The New York board told Einstein’s connections Cunningham’s license had expired and that the horse would not be able to enter the race. Andre Regard, attorney for Midnight Cry, said efforts were made to renew Cunningham’s license in New York but was told by an attorney representing the New York board the application would be denied “in the best interests of racing.”
The application was withdrawn, because an official denial by the board would have jeopardized the horse from running in states with licensing reciprocity rules. Einstein ran one week later on the dirt, finishing second to Curlin in the Stephen Foster at Churchill Downs. Cunningham is still licensed in Kentucky.
Under the current circumstances, Curlin would be denied entry in any race in New York, according to Dan Toomey, a spokesperson for the New York board. In his last start in New York, Curlin won the Jockey Club Gold Cup Sept. 30, more than a month after Cunningham’s license had expired.
Another horse in the race, Proudinsky, is owned by Gary Tanaka, who has been under house arrest in New York since 2005 after being arrested on charges of securities fraud with his partner in Amerindo Investment Advisors, Alberto Vilar.
The Manhattan was won by the Phipps Stable’s Dancing Forever, who was beaten a neck by Einstein in the Gulfstream Park Turf earlier this year.
By Ray Paulick
Copyright ©2008, The Paulick Report
Tags: Curlin, jess jackson, midnight cry stable, new york state racing and wagering board, Paulick Report, Ray Paulick, shirley cunningham
Posted in Curlin | 12 Comments »
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