Posts Tagged ‘midnight cry’
Monday, December 1st, 2008
A Franklin County, Kentucky, Circuit Court judge has ruled against a proposed sale of a 20% interest in Horse of the Year Curlin to majority owner Jess Jackson for $4 million. The ruling by Judge Roger Crittenden came in a hearing on Monday involving the 20% owned by disbarred attorneys Shirley Cunningham and William Gallion, who have been hit with a $42-million judgment in a civil lawsuit involving the fees they charged clients in a class-action lawsuit against the manufacturer of a diet drug. Cunningham and Gallion also face criminal charges stemming from the case. The ruling against the sale was not based on the judge’s disapproval of the $4-million appraisal on the 20% interest, but because two parties objected to the sale: Gallion and Cunningham’s attorney, Andre Regard; and the attorney for the class-action plaintiffs, Angela Ford. The judge’s decision effectively ends a lengthy legal battle involving Jackson’s Stonestreet Farm’s and Cunningham and Gallion’s Midnight Cry Stable (also doing business as Tandy LLC). Midnight Cry originally owned 100% in Curlin and sold Jackson and two other partners an 80% interest after the son of Smart Strike broke his maiden early in 2007. Jackson eventually bought out the other two partners, Satish Sanan and George Bolton. Regard said his clients were looking forward to being partners in Curlin as he enters his new career at stud at Lane’s End Farm in Versailles, Ky., where he will stand for a first-year stud fee of $75,000, payable when the foal stands and nurses. "He’s going to be a very popular horse," Regard said.
The objections of attorneys Regard and Ford were based on the appraisal provided in court by bloodstock consultant Ric Waldman, who testified in November that the current weakened market conditions placed Curlin’s overall value at $20 million as a stallion prospect. A court-ordered receiver arranged for a sealed-bid sale of the 20% through the Keeneland auction company in early November, but when there were no bids, Jackson offered to buy the interest for $4 million. Ford said the receiver had numerous conversations with Stonestreet representatives about the sale but never consulted with her as representative of the plaintiffs. "I think the evaluation is extremely low and I think it’s something we have to contest," she told Crittenden. Richard Getty, attorney for Jackson, told the court that a "bird in the hand — $4 million, which is a million and a half dollars more than I think it’s worth — is better than a bird in the bush. The current market conditions are horrible. … If they are not smart enough to figure out this is a very good deal, given the market conditions, I feel sorry for them. … A year and a half or two years from now this interest may not be worth $4 million." Regard said the court had been told repeatedly by Jackson’s attorney that no stallion farm would stand Curlin as long as Gallion and Cunningham were minority owners. "Lane’s End is the premier stallion farm in the world," Regard said. "Lane’s End was Tandy’s first choice last year, but disagreements between Mr. Jackson and Mr. Farish concerning some other issues in the industry prevented that. … Entering into a contract (with Lane’s End) proves that there were no legal issues related to Tandy’s ownership in Curlin that would prevent him from going to stud. Lane’s End saw no obstacle to standing the horse." Getty said after the ruling he was not aware of any "disagreements" between Jackson and Farish, and also said he was not aware that Jackson was prepared to make any further offers to Gallion and Cunningham for their interest in the horse. Getty pointed out to Crittenden that Lane’s End is receiving a management fee to stand Curlin and that Gallion and Cunningham would be liable for $1 million in expenses between now and April 2010 for management of the horse, insurance premiums and advertising/marketing costs. "Who’s going to pay the $1 million," he asked the judge. He also cited the fact some top race horses, including two-time Horse of the Year Cigar, can be infertile as stallions. "If they want to run the risk of intertility, we can’t help them," Getty said.
Regard responded that Lane’s End’s will be compensated after stud fees are paid. "The largest part of those expenses are going to be paid upon the receipt of the stud fee income," Regard said.
In the end, Crittenden sustained the objections of Ford and Regard to not go forward with the sale of the 20% in Curlin. "If both parties object, then this court does not intend to rule that the receiver accept the offer," Crittenden said. He ruled that the court-ordered receiver will wrap up its role, but be available in the event of any further offers. Copyright © 2008, The Paulick Report Visit the Paulick Report for all the latest news throughout the racing world. Sign up for our Email Flashes to get the latest news, analysis and commentary from Ray Paulick
Tags: andre regard, Curlin, horse of the year, jess jackson, Lane's End, midnight cry, Paulick Report, Ray Paulick, Ric Waldman, richard getty, roger crittenden, shirley cunningham, stonestreet stables, tandy llc, thoroughbred stallions, william gallion, William S. Farish
Posted in Breeding, Curlin | 11 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 »
Friday, June 20th, 2008
Have you ever been to one of those business meetings where the boss calls his managers together and “wants feedback” on an idea that, it’s clear to see, he has already decided to put into play? That’s what Thursday’s Congressional hearing, entitled “Breeding, Drugs, and Breakdowns: The State of Thoroughbred Horseracing and the Welfare of the Thoroughbred,” was all about.
The members of the subcommittee on commerce, trade and consumer protection weren’t at all interested in getting feedback from a broad mix of Thoroughbred industry participants. If they were, they would have invited track owners, jockeys and someone representing the Racing Medication and Testing Consortium to testify.
Most glaring, however, was the absence of any racing fans and horseplayers — the people who fuel the entire multi-billionaire-dollar industry with their bets. They would have had plenty to say. Where were all the fans?
Thursday’s hearing was all about reinforcing the predetermined opinion by some - if not all - of the subcommittee members that racing and breeding is in dire need of some form of federal intervention. It was a two-act play, masterfully choreographed by acting chairwoman Jan Schakowsky of Illinois and ranking Republican Ed Whitfield of Kentucky, who tipped their hand that they will try and amend the Interstate Horseracing Act to employ guidelines that could radically change how the sport is regulated and conducted.
Many of racing’s numerous flaws were exposed during the three-hour hearing, which came to an abrupt end when the members were called to the floor of the House of Representatives for a vote. The happiest man in the room when that happened was National Thoroughbred Racing Association CEO Alex Waldrop, the last of a dozen speakers providing testimony. House members were interrupted just before a question and answer session got under way in which Waldrop was likely going to be grilled.
In short order, those problems are:
- Drugs have contributed to a decline of the Thoroughbred breed and Thoroughbred racing
- Research, drug testing programs and horse rescue/retraining efforts are severely underfunded
- The lack of a central authority or national regulatory standards, and the existence of state-by-state regulations, have led to dysfunction
- Existing industry organizations and perceived industry leaders have failed miserably to address the problems successfully
Allowing Congress to interfere with any industry is a frightening thought, given some of the pointless and idiotic questions directed at the two panels. For example, if one of the Congressman had his way, inbreeding would be banned. What’s next, nicking? However, doing nothing under the present industry leadership is the greatest risk we can take.
The uninformed comment about inbreeding was far from being the most outrageous aspect of Thursday’s hearing. It was the complete absence, both in body and spirit, of the racing fan and horseplayer. To my knowledge there was only one mention of fans (by Waldrop, in response to a question) throughout the day, as if they didn’t exist. Let’s not forget that the word “consumer” is part of this subcommittee’s name.
Shame on the committee for not including racing’s ultimate consumers who fuel the industry’s revenue engine.
The NTRA is attempting to put together a coalition of horseplayers, but the NTRA’s track record is not exactly inspiring on many levels. But before we bludgeon that 10-year-old organization to death, it should be pointed out that divisiveness, lack of trust and reticence from other alphabet groups (TOBA, TJC, HBPA, THA, TOC, AAEP, RCI, TRA et al) to give up control emasculated the NTRA and prevented it from having the national oversight and major league commission office status it was designed to have.
Jockey Club CEO Alan Marzelli was pressed hardest by House members and ultimately came out looking the worst of all the industry experts during the hearing. When asked what authority the Jockey Club has to ban steroids and enact other recommendations of its safety committee, Marzelli said it has the “power of persuasion.” It was a pitiful and embarrassing moment for the industry, or a bad attempt by Marzelli to imitate Don Corleone of The Godfather.
The Jockey Club’s same power of persuasion has been ineffective on getting a national license for racehorse owners. If that power of persuasion was so strong, a national owner’s license would have happened 20 years ago when the Jockey Club created an ownership registry, which could have been a first step toward that goal. That boat never left the dock. Instead, we have a patchwork system of state licensing that is a poster child for the industry’s complete and total dysfunction when it comes to regulatory oversight. Look at the situation involving Curlin’s minority owners, the Midnight Cry Stable. Their horse, Einstein, couldn’t run in New York on Belmont Stakes Day because of licensing problems, but could run at Churchill Downs a week later because Kentucky has different licensing rules.
If the Jockey Club’s power of persuasion isn’t strong enough to get something as simple as a national owner’s license accomplished, how can we count on the same failed leaders to persuade 38 state agencies to uniformly ban steroids and enact other necessary change to move the sport forward?
By Ray Paulick
Copyright ©2008, The Paulick Report
Tags: Alan Marzelli, alex waldrop, Congressional Hearing, Curlin, ed whitfield, einstein, Horse Racing, Jan Schakowsky, Jockey Club, midnight cry, National Thoroughbred Racing Association, Paulick Report, racing medication and testing consortium, Ray Paulick, Www.paulickreport.com
Posted in Congressional Hearing | 8 Comments »
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