IEAH sells its remaining interest in Big Brown

  • click above & share!
    X
  • click above & share!
    X


  • click above & share!
    X
  • click above & share!
    X
Big Brown Big Brown

International Equine Acquisitions Holdings, majority owner of 2008 champion 3-year-old male Big Brown during his racing career, has sold its remaining 11 shares in the stallion to other shareholders and partners in Three Chimneys Farm, where the son of Boundary entered stud in 2009.

Jamie LaMonica, whose The Stallion Company brokered the deal between IEAH principle Michael Iavarone and the investor group, confirmed that IEAH “no longer has any ownership” in the stallion, whose first crop of foals were 2-year-olds of 2012.

“It was a good trade,” LaMonica said. “(IEAH) needed to get some cash, and we believed in Big Brown and wanted to buy him. He’s bred more mares each year that he’s been at stud, a testimony to the quality of his foals. We think the best is yet to come – he’s a horse with positive momentum – so we purchased the shares.”


Big Brown, bred in Kentucky by Dr. Gary Knapp’s Monticule, sold as a yearling at the Fasig-Tipton Kentucky October sale for  $60,000 and then was purchased by Paul Pompa Jr. for $190,000 from pinhooker Eddie Woods, agent, at the 2007 Keeneland April sale of 2-year-olds in training. IEAH bought a 75% interest in Big Brown from Pompa after the colt’s debut win as a 2-year-old. After Big Brown won the Kentucky Derby – his fourth win without a loss – Three Chimneys struck a 60-share syndication deal that reportedly put a value on the horse upwards of $50 million but left IEAH with a significant ownership position.

Iavarone, who could not be reached by telephone and did not return a message, said at the time Big Brown was retired in October 2008, “When we did a deal with Three Chimneys we told them that we want to stay in this horse’s life forever, and they were great in everything that they did, structuring a deal to keep us in the game.”

In recent years, however, IEAH has struggled financially. The Ruffian Equine Medical Center, built by IEAH across from Belmont Park in New York at a reported cost of $18 million, closed its doors in March 2011 and has not reopened. IEAH’s bloodstock holdings have fallen to the point that the stable, according to its website, had just nine starts in 2012 for earnings of $191,845, a huge decline from Big Brown’s championship year when IEAH won 58 races from 243 starts and over $10.7 million.

Big Brown enters his fifth season at Three Chimneys in Midway, Ky., with a stud fee of $35,000 live foal. He wound up 11th leading first crop sire of 2012.

New to the Paulick Report? Click here to sign up for our daily email newsletter to keep up on this and other stories happening in the Thoroughbred industry
  • Tinky

    Gee, they needed cash? Whodathunk?

    • Don Reed

      Tink (hoping you’re not sore); Agreed.  They’re selling everything that will bail out the 2nd coming of the the plan that had no foundation in fact.

  • Tinky

    Gee, they needed cash? Whodathunk?

  • Justmyopinion

    Let’s hope that Mikey will start paying the good people he owes for vet work, training vanning of his horses that is long overdue. 

    • Otis

      I know a vet he didn’t pay.

    • Don Reed

      Who would have been foolish to work for them w/o getting paid upfront?

  • Justmyopinion

    Let’s hope that Mikey will start paying the good people he owes for vet work, training vanning of his horses that is long overdue. 

  • Ida Lee

    I knew IEAH was in trouble when the Ruffian Equine Medical Center closed which was such a pity. As to Big Brown, I’m sure this is what’s best for one of the great loves of my life. I’m looking at a little statue of him I have on my desk and I’m sighing…As to IEAH, I don’t know why I’m not surprised they’re broke…By the way, the conformation photo of Big above captures him in all his radiat equine glory.

    • Glimmerglass

      The trouble signs existed well before their Medical Center foray.

  • Ida Lee

    I knew IEAH was in trouble when the Ruffian Equine Medical Center closed which was such a pity. As to Big Brown, I’m sure this is what’s best for one of the great loves of my life. I’m looking at a little statue of him I have on my desk and I’m sighing…As to IEAH, I don’t know why I’m not surprised they’re broke…By the way, the conformation photo of Big above captures him in all his radiat equine glory.

  • ron richards

    I have a keen insight into the workings of IEAH. All I can say is look out for them. i know they are putting together a massive amount of cash and are going to be making a great deal of noise in the coming months. I also know they are very close to selling REMC as well. The sale of Big Brown was at a valuation twice his value and they have retained all of their lifetime breeding rights. 

  • Mandy

    I am sad they are no longer owning Big Brown!!!!! I saw Mike Ivarrone on Saturday at Gulfstream and he is sooo good looking! unfortunately he always has a throng of gorguess woman around him….

  • ray carlos

    sounds like a savy business move!! buy low, sell high and do it all again!! we are totally behind you mike

  • Glimmerglass

    The trouble signs existed well before their Medical Center foray.

  • Ray carlos

    was told the deal brought in 11 million….not a bad piece of business considering Big Brown hasn’t exactly killed it….

  • Much closer to deal than Ron

    Ron Richards, they have in fact not retained ANY breeding rights. They have zero breeding rights left.

  • Bristling

    They are DONE son !!!!!!!!

  • Much closer to deal than Ron

    Ron Richards, they have in fact not retained ANY breeding rights. They have zero breeding rights left.

  • Jeff

    Mike is a sexy little devil. I want him.

    Jeff

  • GB

     Thank god..  Talk about bad for the game.

  • Thomalene E.

    they are hookers, Mandy.  Just so you know…..

  • Brad W

    There is no way 11 shares brought in 11 Million. Impossible!

  • RayPaulick

    Maybe 11 million pesos. 

  • Tinky

    When Bernanke gets through debasing the Dollar, it may not seem so far-fetched!

  • Otis

    I know a vet he didn’t pay.

  • Ida Lee

    Now, Mr. Paulick, I detect this is a put down of my precious Big Brown. I’m pretty sure the $11 million figure is wrong but I’m also sure they got a good amount of American dollars for totally giving him up like this.  Anyway, in my heart, he’s worth $11 million and more…

  • horse

    Let’s see, is this is a recipe for distaster?
    IEAH
    Desormeaux
    Dutrow

    • Don Reed

      I agree.

  • horse

    Let’s see, is this is a recipe for distaster?
    IEAH
    Desormeaux
    Dutrow

  • Thelibrarian

    I give IEAH credit where credit is due. They were smart enough to buy a made racehorse for a lot of money & then got lucky & won the Derby and made the last big money syndication deal we’ve seen in this business. USUALLY the requirement for having a chance to make a major stud is that the syndicate members own lots of good mares.  That said…..Big Brown bred 141 mares last year……that’s alot. Let’s hope there’s some quality in that 141? Good Luck!

  • Thelibrarian

    I give IEAH credit where credit is due. They were smart enough to buy a made racehorse for a lot of money & then got lucky & won the Derby and made the last big money syndication deal we’ve seen in this business. USUALLY the requirement for having a chance to make a major stud is that the syndicate members own lots of good mares.  That said…..Big Brown bred 141 mares last year……that’s alot. Let’s hope there’s some quality in that 141? Good Luck!

  • tfly

    Too bad you never hear about the outcome of the lawsuit that was initiated by that family in N.C. that lost something like 20 or 30 million dollars.  A long time investment advisor had loaned/invested in IEAH, directly or through one other entity, even though he never had any previous horse investments.  Very suspicious one might think. 

    • Don Reed

      “Very suspicious one might think.”

      Why?  What suspicion
      could survive what follows?

      1) Name of lawsuit: Omitted.  In which court & state of the Union:
      Omitted. 

      Dollar amount (specified in the complaint) of alleged financial
      damages as noted in the plaintiff’s brief: Omitted.

      2) When (date) lawsuit was filed: Omitted. 

      Date when “outcome” occurred: Omitted.

      3) Name of family that initiated lawsuit: Unnamed. 

      Name of opposing law firms: Ditto.

      4) Exact amount of financial loss: Unspecified.

      5) Name of “investment advisor”: Unnamed.

      6) Method of investment, “direct or through one
      another [another] entity”:
      Unspecified.

      7) “… even though he never had any previous horse
      investments”: “He” — Who “He”?

      8) “Suspicious”?  Yes!

      OF THE PERSON who posted this dishonest crap.

      • tfly

        See above.

    • Bookie Buster

       http://www.drf.com/news/ieah-investor-focus-lawsuit

      This one?

      Litigation involving investors in IEAH Stables took a new twist Monday
      when Jason Galanis, a venture capitalist and consultant employed by a
      group offering to buy out IEAH and its bloodstock holdings, sued current
      IEAH shareholder Matthew Szulik.

      In a $60 million lawsuit filed last month in North Carolina, Szulik –
      founder of the RedHat software company – claimed IEAH’s major financial
      backer, James Tagliaferri of the investment advisory firm TAG Virgin
      Islands, defrauded him by investing in high-risk ventures like IEAH
      without his knowledge or consent.

      • tfly

        Yup.  Thanks Bookie.  Don-  just because you’re not aware of it doesn’t make it ‘dishonest crap.’  Do you critique your own posts with such detail and specitivity?  Just wondering…

        • Don Reed

          How can someone who got absolutely nothing right with a
          posting be busy wondering about anyone else’s competence?

           

          To answer your question, yes, I do.  I really HATE making mistakes that are preventable
          and strive to avoid making them. 
          Moreover, when I notice I’ve made a mistake, the person to whom the
          mistake might injure gets an immediate correction & apology from me.

           

          Now that you’re done examining my credentials lets examine
          yours. 

           

          But that’s impossible. 
          You’re one of the many gutless people who hides behind a fake name.

           

          Therefore, should you in the future be the person about whom
          I may have made an error of statement of fact, a fake apology will be sent to
          you without delay.

          • Don Reed

            Fake Apology Is Issued To…

            Tfly.  The letter should have been signed, “Don Reed.”

          • tfly

            i normally don’t respond to childish and immature responses, but exceptions do occur.  Perhaps you might want to consider that people don’t use their real names because of their occupation? And why would you assume any name on a blog is a real name?  I know that you’re posting as Don Reed, i know what i would name i would really call you, but there’s no way to verify you’re legal name.

          • tfly

            Sorry for the typo.  That should have read:  I know that you’re posting as Don Reed, i know what name i would really use, but there’s no way to verify your legal name.

          • Don Reed

            Inspector Lestrade, you’ll just have to figure all
            this out yourself.

  • tfly

    Too bad you never hear about the outcome of the lawsuit that was initiated by that family in N.C. that lost something like 20 or 30 million dollars.  A long time investment advisor had loaned/invested in IEAH, directly or through one other entity, even though he never had any previous horse investments.  Very suspicious one might think. 

  • Olebobbowers

    Ida, with all due respect, I must warn you that the Freedom of Speech act does not apply to the paulick report. If you disagree with his opinion you may be ‘suspended’.

  • Ida Lee

    “Ole”…thank you for responding to my comment but your comment is a little misplaced. I’ve only been “edited” once and it was just a name I used which quite frankly I shouldn’t have. I’m one of the most opinionated people I know and have given numerous opinions on numerous topics on this site without incident and most especially without editing.  

  • Thelibrarian

    They BETTER have cash!…..with their reputation that’s ALL anybody’s gonna want to take! Ask around….people that have had dealings with them say they’re like crime…..they DON’T pay!
     

  • http://www.facebook.com/people/Nick-Arden/1054071262 Nick Arden

    Good riddance.

  • http://www.facebook.com/people/Nick-Arden/1054071262 Nick Arden

    Good riddance.

  • Foxfield

    I love reading the comments on the Paulick report….humor, gossip, perhaps not so intellectual but does anyone out there work for a living…it seems as though there is a steady stream of chatter all day long!!!!

  • Smokey Glacken

    Maybe that ol’ racetracker extraordinaire, Al Einstein, put it best about IEAH, when he said, “Anyone who doesn’t take truth seriously in small matters, cannot be trusted in large ones either.” Al made sure to remind people when he whispered, “The attempt to combine wisdom and power has only rarely been successful, and then, only for a short while.”

  • Smokey Glacken

    Maybe that ol’ racetracker extraordinaire, Al Einstein, put it best about IEAH, when he said, “Anyone who doesn’t take truth seriously in small matters, cannot be trusted in large ones either.” Al made sure to remind people when he whispered, “The attempt to combine wisdom and power has only rarely been successful, and then, only for a short while.”

  • RayPaulick

    Comments from one individual using multiple aliases to post remarks on this thread have been removed. 

    • Don Reed

      I was hoping, Ray, that if you had been able to tear
      yourself away from the teenage (born @ 1996) obsession of the ultimate time wasters

       

      Facebook and Twitter — run by the American Match Kings…

       

      Sites that bring in absolutely no new revenue, if I may add…

       

      You would have noticed that for the past year, the PR has
      been inundated with the very thing that today, you, rightfully, now object to.

       

      All sorts of “new” names were saying what the “old”
      names had been posting all along.

       

      I don’t get it.  Chicago guys KNOW
      scams.  When did you hear the alarm?

       

      Doesn’t matter.  Glad
      to see you again, as you once were.

      Irascible and NOT for sale.

  • RayPaulick

    Comments from one individual using multiple aliases to post remarks on this thread have been removed. 

  • Bookie Buster

    Big Brown was lightning in a bottle and on some levels i feel ashamed of not liking him strictly because of his dubious connection. I remember watching him gallop around one early morning in splendid silence thinking “yanno this horse is really cool”…but always a caveat.

    This final outcome is nothing but good for Big Brown long term and into the future.

  • Bookie Buster

    Big Brown was lightning in a bottle and on some levels i feel ashamed of not liking him strictly because of his dubious connection. I remember watching him gallop around one early morning in splendid silence thinking “yanno this horse is really cool”…but always a caveat.

    This final outcome is nothing but good for Big Brown long term and into the future.

  • Ssk12955

    Ivarone, and his ilk are (Deleted). Look who trained for them. The best thing Ivarone does id it’s Italian deli chain of stoes on long Island. Good ridenc
    e to this group of bad guys.

  • Ssk12955

    Ivarone, and his ilk are (Deleted). Look who trained for them. The best thing Ivarone does id it’s Italian deli chain of stoes on long Island. Good ridenc
    e to this group of bad guys.

  • Ida Lee

    Hi Foxfield: I work but I’m the only one in my office who doesn’t smoke so I take my “smoking breaks” and instead of freezing outside destroying my health I log on and check up on all things equine and the comments which I love reading.

  • Don Reed

    From beginning to end, a great horse that was screwed by his owners.

  • Don Reed

    From beginning to end, a great horse that was screwed by his owners.

  • Don Reed

    Tink (hoping you’re not sore); Agreed.  They’re selling everything that will bail out the 2nd coming of the the plan that had no foundation in fact.

  • Don Reed

    I agree.

  • Don Reed

    I was hoping, Ray, that if you had been able to tear
    yourself away from the teenage (born @ 1996) obsession of the ultimate time wasters

     

    Facebook and Twitter — run by the American Match Kings…

     

    Sites that bring in absolutely no new revenue, if I may add…

     

    You would have noticed that for the past year, the PR has
    been inundated with the very thing that today, you, rightfully, now object to.

     

    All sorts of “new” names were saying what the “old”
    names had been posting all along.

     

    I don’t get it.  Chicago guys KNOW
    scams.  When did you hear the alarm?

     

    Doesn’t matter.  Glad
    to see you again, as you once were.

    Irascible and NOT for sale.

  • Don Reed

    “Very suspicious one might think.”

    Why?  What suspicion
    could survive what follows?

    1) Name of lawsuit: Omitted.  In which court & state of the Union:
    Omitted. 

    Dollar amount (specified in the complaint) of alleged financial
    damages as noted in the plaintiff’s brief: Omitted.

    2) When (date) lawsuit was filed: Omitted. 

    Date when “outcome” occurred: Omitted.

    3) Name of family that initiated lawsuit: Unnamed. 

    Name of opposing law firms: Ditto.

    4) Exact amount of financial loss: Unspecified.

    5) Name of “investment advisor”: Unnamed.

    6) Method of investment, “direct or through one
    another [another] entity”:
    Unspecified.

    7) “… even though he never had any previous horse
    investments”: “He” — Who “He”?

    8) “Suspicious”?  Yes!

    OF THE PERSON who posted this dishonest crap.

  • Bookie Buster

     http://www.drf.com/news/ieah-i

    This one?

    Litigation involving investors in IEAH Stables took a new twist Monday
    when Jason Galanis, a venture capitalist and consultant employed by a
    group offering to buy out IEAH and its bloodstock holdings, sued current
    IEAH shareholder Matthew Szulik.

    In a $60 million lawsuit filed last month in North Carolina, Szulik –
    founder of the RedHat software company – claimed IEAH’s major financial
    backer, James Tagliaferri of the investment advisory firm TAG Virgin
    Islands, defrauded him by investing in high-risk ventures like IEAH
    without his knowledge or consent.

  • Bookie Buster

     Don thank you for the laugh you sounded just like my x wife’s attorney :) His strong suit wasn’t research or fact checking either…

    • 3875waldo

      Yes, but this time, it didn’t cost you (or her).  Pro bono humor!

      Ten hours later, I’m still amazed that someone could type THAT many words and say, basically, nothing.  Quite a feat.  Too bad we can’t toss this spongy stuff in the ocean to mop up the oil spills.

  • Bookie Buster

     Don thank you for the laugh you sounded just like my x wife’s attorney :) His strong suit wasn’t research or fact checking either…

  • brussellky

    Most of the posts here are irrelevant with respect to his stallion career.  Big Brown is by very little out of less than nothing (HORRIBLE female family).  How many successful stallions fit this profile?

  • brussellky

    Most of the posts here are irrelevant with respect to his stallion career.  Big Brown is by very little out of less than nothing (HORRIBLE female family).  How many successful stallions fit this profile?

  • 3875waldo

    Yes, but this time, it didn’t cost you (or her).  Pro bono humor!

    Ten hours later, I’m still amazed that someone could type THAT many words and say, basically, nothing.  Quite a feat.  Too bad we can’t toss this spongy stuff in the ocean to mop up the oil spills.

  • tfly

    Yup.  Thanks Bookie.  Don-  just because you’re not aware of it doesn’t make it ‘dishonest crap.’  Do you critique your own posts with such detail and specitivity?  Just wondering…

  • tfly

    See above.

  • Sue M. Chapman

     I pass the Ruffian Medical Center each day. What a tremendous loss for local horsemen. Beats a van ride to New Bolton or Cornell.  Sadly, scuttlebut says it, too, like IEAH, is tied up in litigation.

  • Sue M. Chapman

     I pass the Ruffian Medical Center each day. What a tremendous loss for local horsemen. Beats a van ride to New Bolton or Cornell.  Sadly, scuttlebut says it, too, like IEAH, is tied up in litigation.

  • Don Reed

    How can someone who got absolutely nothing right with a
    posting be busy wondering about anyone else’s competence?

     

    To answer your question, yes, I do.  I really HATE making mistakes that are preventable
    and strive to avoid making them. 
    Moreover, when I notice I’ve made a mistake, the person to whom the
    mistake might injure gets an immediate correction & apology from me.

     

    Now that you’re done examining my credentials lets examine
    yours. 

     

    But that’s impossible. 
    You’re one of the many gutless people who hides behind a fake name.

     

    Therefore, should you in the future be the person about whom
    I may have made an error of statement of fact, a fake apology will be sent to
    you without delay.

  • Don Reed

    Fake Apology Is Issued To…

    Tfly.  The letter should have been signed, “Don Reed.”

  • Don Reed

    Same here, Ida.  I’m quite amazed sometimes at the latitude extended to the readers.

  • Don Reed

    Who would have been foolish to work for them w/o getting paid upfront?

  • tfly

    i normally don’t respond to childish and immature responses, but exceptions do occur.  Perhaps you might want to consider that people don’t use their real names because of their occupation? And why would you assume any name on a blog is a real name?  I know that you’re posting as Don Reed, i know what i would name i would really call you, but there’s no way to verify you’re legal name.

  • tfly

    Sorry for the typo.  That should have read:  I know that you’re posting as Don Reed, i know what name i would really use, but there’s no way to verify your legal name.

  • Don Reed

    Inspector Lestrade, you’ll just have to figure all
    this out yourself.

  • Bristling

    They are DONE son !!!!!!!!

  • Thelibrarian

    They BETTER have cash!…..with their reputation that’s ALL anybody’s gonna want to take! Ask around….people that have had dealings with them say they’re like crime…..they DON’T pay!
     

  • GB

     Thank god..  Talk about bad for the game.

  • Thomalene E.

    they are hookers, Mandy.  Just so you know…..

  • Brad W

    There is no way 11 shares brought in 11 Million. Impossible!

  • RayPaulick

    Maybe 11 million pesos. 

  • Tinky

    When Bernanke gets through debasing the Dollar, it may not seem so far-fetched!

  • Ida Lee

    Now, Mr. Paulick, I detect this is a put down of my precious Big Brown. I’m pretty sure the $11 million figure is wrong but I’m also sure they got a good amount of American dollars for totally giving him up like this.  Anyway, in my heart, he’s worth $11 million and more…

  • Olebobbowers

    Ida, with all due respect, I must warn you that the Freedom of Speech act does not apply to the paulick report. If you disagree with his opinion you may be ‘suspended’.

  • Ida Lee

    “Ole”…thank you for responding to my comment but your comment is a little misplaced. I’ve only been “edited” once and it was just a name I used which quite frankly I shouldn’t have. I’m one of the most opinionated people I know and have given numerous opinions on numerous topics on this site without incident and most especially without editing.  

  • Foxfield

    I love reading the comments on the Paulick report….humor, gossip, perhaps not so intellectual but does anyone out there work for a living…it seems as though there is a steady stream of chatter all day long!!!!

  • Ida Lee

    Hi Foxfield: I work but I’m the only one in my office who doesn’t smoke so I take my “smoking breaks” and instead of freezing outside destroying my health I log on and check up on all things equine and the comments which I love reading.

  • Don Reed

    Same here, Ida.  I’m quite amazed sometimes at the latitude extended to the readers.

Twitter