Posts Tagged ‘zayat stables’

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.

Copyright © 2010, The Paulick Report

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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

Press Release

For the first time, female Thoroughbreds occupy the top two spots on the list of leading North American earners in 2009, according to final statistics released today by Equibase Company LLC, the Thoroughbred industry’s official database for racing information.
 
Zenyatta earned $3,330,000 in 2009 to become the fourth filly or mare, and the first since Dance Smartly in 1991, to top the leading earners list. Runner-up Rachel Alexandra earned $2,746,914.
 
In the other categories, Steven Asmussen, Garrett Gomez and Michael Gill head the individual lists of the leading trainers, jockeys and owners, respectively, by North American earnings in 2009.
 
The year-end compilations are distributed annually by Equibase and include results from Thoroughbred racing in North America only. The top 100 North American leaders in each category are accessible at equibase.com.
 
Asmussen, who previously topped the trainers’ list in 2003 and 2008, won a single-season record 650 races from 2,944 starts for North American earnings of $21,876,405 in 2009. Runner-up was Todd Pletcher, whose horses won 238 races from 1,108 starts for earnings of $15,454,429 in 2009.
 
Completing the list of top 10 trainers by North American earnings in 2009 were Bob Baffert, $9,574,394 (117 wins/504 starts); William Mott, $7,957,370 (116/689); Jerry Hollendorfer, $7,309,169 (273/1,210); Kiaran McLaughlin, $6,983,433 (113/555); Scott Lake, $6,928,884 (307/1,462); Christophe Clement, $6,849,013 (91/448); Robert Frankel, $6,586,098 (42/293); and John Sadler, $5,999,956 (132/637).
 
Garrett Gomez, with earnings of $18,571,171, topped the North American leading jockeys’ list for the fourth consecutive year in 2009. He rode the winners of 210 races from 967 mounts. Julien Leparoux finished second, with 247 wins from 1,284 mounts and earnings of $18,560,565.
 
Rounding out the list of top 10 jockeys by North American earnings in 2009 were Ramon Dominguez, $18,348,422 (391 wins/1,651 mounts); Kent Desormeaux, $13,262,760 (177/936); Joel Rosario, $13,073,777 (284/1,476); John Velazquez, $13,069,881 (204/1,160); Rafael Bejarano, $12,403,993 (240/1,129); Rajiv Maragh, $11,736,729 (236/1,479); Robby Albarado, $11,504,625 (204/1,148); and Alan Garcia, $11,280,481 (183/1,049).
 
Michael Gill won 370 races from 2,247 starts and earned $6,669,950 in North America in 2009 to lead all owners. Runner-up was Juddmonte Farms Inc., which won 27 races from 116 starts for earnings of $6,525,818. 
 
Completing the list of top 10 owners by North American earnings in 2009 were Zayat Stables LLC, $6,323,286 (113 wins/573 starts); Darley Stable, $4,977,513 (78/343); Heiligbrodt Racing Stable, $4,880,906 (151/819); Augustin Stable, $4,825,552 (57/244); Mr. and Mrs. Jerome S. Moss, $4,172,533 (31/128); Kenneth and Sarah Ramsey, $4,108,857 (140/521); Melnyk Racing Stables Inc., $3,991,368 (81/387); and Maggi Moss, $3,799,637 (193/716).
 
In addition to the official North American racing leaders’ lists available at equibase.com, Equibase also provides a second set of leaders’ lists that includes the results of the Dubai World Cup card from March 28, 2009, at Nad Al Sheba Racecourse. Including these international earnings, Well Armed was the leading Thoroughbred with earnings of $3,649,000 and WinStar Farm LLC was the leading owner with earnings of $7,145,236. Steven Asmussen remained the leading trainer with earnings of $21,876,405 and Garrett Gomez the leading jockey with earnings of $18,571,171.
 
Equibase Company is a partnership between The Jockey Club and the Thoroughbred Racing Associations of North America and serves as the Thoroughbred industry’s official database for racing information. In addition to year-end rankings of the top trainers, jockeys, owners and horses, the company’s website, equibase.com, features daily rankings of the top 100 by category for the current year as well as an ever-increasing menu of racing information and handicapping products for handicappers of every skill level.

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.

By Ray Paulick
Eclipse Award voters seem to have developed multiple personalities over the years when it comes to their annual selection of the outstanding owner of Thoroughbred racehorses in North America. How else can you explain that the award goes to a one-horse stable some years (Dot-Sam Stable, owner of John Henry in 1981; Carolyn Hine, owner of Skip Away in 1997); to large-scale operations that rack up stakes victories and money (John Franks, 1983-84, 1993-94; Mr. and Mrs. Eugene Klein, 1985-98; Frank Stronach, 1998-2000, 2008; Kenneth and Sarah Ramsay, 2004); and even to massive claiming stables (Richard Englander 2001-02; Michael Gill, 2005)?

When I think of outstanding owners in this game, I think of people like the late Bob Lewis and his wife Beverly, who brought sportsmanship, competitiveness, decency and fun to horse racing, and, just as importantly, competed at the sport’s highest level. Of course, the Lewises were never voted an Eclipse Award as outstanding owner. What an injustice!

The problem with the outstanding owner vote, and other categories in Eclipse Award competition, is that there are no rules. For horses, voters aren’t given guidelines as to whether races outside of North America should be considered, and there is no minimum number of starts required on this continent (as Canada, for example, requires for its Sovereign Awards) to qualify. Thus, we have a number of Eclipse Award champions, fairly or unfairly, who raced overseas throughout the year, and made just one start (usually in a Breeders’ Cup race) before being voted an Eclipse Award. Some voters have a bias against those one-race wonders and will never vote for them. Others may automatically vote a Breeders’ Cup winners as a divisional champion.

Would guidelines in these equine categories help? Perhaps.

But I think they are really needed and long overdue in the outstanding owner competition (along with the other human awards for breeder, trainer, jockey and apprentice jockey), and the time has come for the three groups that present the Eclipse Awards—the National Thoroughbred Racing Association, Daily Racing Form and National Turf Writers Association—to establish some guidelines to ensure the awards recognize outstanding achievement and excellence in the sport.

How do you measure outstanding achievement and excellence? It’s easy, through the American Graded Stakes program, an objective statistical ranking (Grade 1, 2, 3) of the top 500 races run in the United States. (To keep the Eclipse Awards "North American" and inclusive of Canada, that country’s separate graded stakes program can also be used.) 

Should the award automatically go to the individual with the most graded stakes victories? No. Opportunity (the number of starts or overall size of stable) should be a consideration. Some owners have enjoyed enormous success with a small stable, and they could be overshadowed by a large operation that wins more graded stakes because it has more starters. However, nobody should be given an Eclipse Award for outstanding performance if at least some of those performances didn’t take place at the highest level of the sport.

Simply put, no owner, breeder, trainer, jockey or apprentice jockey should be eligible for an Eclipse Award without winning at least one graded stakes. These are the races that have been used for more than 30 years to rank the top level of the sport. We can argue and debate the merits of some of the grades the Thoroughbred Owners and Breeders Association committee assigns to certain races, but this program has withstood the test of time, and it is now time to put it to use for something as important as the Eclipse Awards.

Along with some Eclipse Award guidelines that require success in graded stakes, the NTRA should distribute to voters detailed information about performance in graded stakes by owners, breeders, trainers, jockeys and apprentice jockeys. That’s one of the reasons the Paulick Report launched this weekly series, American Graded Stakes Standings brought to you by Keeneland. We think it’s important, and I know we are not alone. Our information, while unique, is not complete, and the NTRA should use its association with Equibase to compile more detailed information for voters that includes starts, and 1-2-3 finishes in American Graded Stakes races.

Last year, when Frank Stronach was voted the Eclipse Award as outstanding owner, Bill Finley, writing for espn.com, said the voters “blew it” and “exposed their ignorance” by not giving the award to IEAH stable. His column is worth reading (click here to view it). While not knocking Stronach’s year, Finley pointed out how much better a 2008 IEAH had in graded stakes performances, winning 11 Grade 1 races with eight different horses owned by various partnerships. Stronach won three Grade 1 races with Ginger Punch, the previous year’s champion older filly or mare.

If voting were held today, I’m afraid Michael Gill might get his second Eclipse Award, since he is atop the list of leading owners by money won, which over the years seems to have more influence on voters than any other information they receive in their voting packet.

In my mind, someone like Gill has no business winning an Eclipse Award. While he may be good for the tracks where he runs his claiming horses (he has over 1,800 starts this year, so he makes racing secretaries happy by helping fill races), Gill has not won a single graded stakes race in 2009. In 2005, when he won the Eclipse Award as outstanding owner, Gill won one graded race, the Grade 2 Gallant Bloom Handicap with Upateedle. Under my suggested guidelines, he would have qualified that year, but he certainly would not have gotten my vote. (I have not had an Eclipse Award vote since I resigned from the National Turf Writers Association in 2002, but that’s a story for another day).

In 2009, Sheikh Mohammed is the clear leader in American Graded Stakes wins through his Darley Stable (eight winners, 12 AGS wins) and Godolphin Racing (five AGS winners, five wins). But Zayat Stables is also having a good year with six AGS winners that have won 11 AGS races, as is West Point Thoroughbreds (four AGS winners of six races) and George Strawbridge’s Augustin Stable (three AGS winners, eight races).

Let’s hope, if the NTRA and the others who present the Eclipse Awards fail to develop long-overdue guidelines for voters, then the voters will take it upon themselves to do some homework, to look beyond the top of the money-winning chart, and recognize excellence at the highest end of the game. That’s what champions should be about.

By Ray Paulick
Saturday was a huge afternoon for trainer Steve Asmussen as he won both major races for 3-year-olds, taking the $500,000 Jim Dandy by 2 1/4 lengths  with Stonestreet Stables and Gulf Coast Farms’ Kensei only a few minutes after Zayat Stables’ Soul Warrior got up in the final strides to win the $750,000 West Virginia Derby by a neck, upsetting Mine That Bird and Big Drama.

Soul Warrior, a 3-year-old colt by Lion Heart, caught a game Big Drama in the shadow of the wire, outfinishing Mine That Bird, who trailed the field early and commenced his move under Mike Smith with about a half mile to go. Big Drama, as expected, set all the early fractions, going :23.73, :46.56, 1:10.45 and 1:37.13. He held a clear (up to lengths) and uncontested lead throughout, but the speedy son of Montbrook tired late and was unable to hold off the late run of Soul Warrior. Final time was 1:51.46.

In something of a surprise, Big Drama was made the 4-5 favorite over Mine That Bird, who was the even-money second choice. Soul Warrior was a 23-1 outsider who paid $48 to win. The Grade 2 West Virginia Derby was his first stakes win and third win overall from seven starts. He previously finished second in the Iowa Derby for Asmussen.

Dale Beckner rode Soul Warrior, picking up the mount from Miguel Mena on race day. West Virginia Derby chart.

Kensei was the co-second choice in the Jim Dandy behind Charitable Man. The son of Mr. Greeley was coming off a 3 1/4-length win in the Dwyer Stakes at Belmont July 4. In the Jim Dandy, Edgar Prado allowed Kensei to sit just off the pace set by Warrior’s Reward, contested the lead after a half-mile and drew off down the lane. Warrior’s Reward held second, followed by Charitable Man, the 6-5 favorite. Final time for the 1 1/8 miles on a fast track was 1:47.90 after fractions of :23.43, :47.50, 1:11.55 and 1:35.42.

Kensei was winning for the fourth time in seven starts. Jim Dandy chart.

Rachel Alexandra could complete a weekend trifecta for Asmussen with a win in Sunday’s $1,250,000 Haskell Invitational Handicap at Monmouth Park. The big weekend is coming just two weeks after he was handed a six-month suspension from the Texas Racing Commission for a positive test for a metabolite of lidocaine in a horse that won at Lone Star Park one year ago. The suspension was appealed and Asmussen was granted a stay.

JIM DANDY QUOTES, COURTESY OF NEW YORK RACING ASSOCIATION MEDIA OFFICE:

Copyright © 2009, The Paulick Report

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