The American Basketball Association, Inc. (ABA) (www.abalive.com) today announced that it has entered into a Letter of Intent to acquire IEAH Sales Corp., a subsidiary of IEAH Stables, Inc. which has been created to segregate its pinhooking division. IEAH Stables (IEAH) is engaged in all facets of thoroughbred racing with a proven track record of success. IEAH purchased managing ownership of Big Brown in September of 2007, following the colt's maiden victory. Big Brown would then go on to win the Kentucky Derby, Preakness Stakes, Florida Derby and Haskell Invitational. Following the Kentucky Derby, IEAH consummated a sale of Big Brown's breeding rights to the prestigious Three Chimney's farm at a valuation of more than 15 times his purchase price. Big Brown now commands a $35,000 stud fee and is poised to be one of the top thoroughbred stallions in both the Northern and Southern Hemisphere.
“It has long been the goal of the ABA to become a major sports and entertainment company branching out well beyond the ABA,” stated Joe Newman, ABA CEO. “I have known Michael Iavarone, President of IEAH for many years and have been greatly impressed with the progress his company has made in the pinhooking (buying and selling of thoroughbred horses) and believe that this is the first step towards accomplishing our goal. We are very excited about this new venture.”
IEAH has also purchased several other top horses over the last few years including Breeder's Cup Champions Court Vision and Kip Deville. IEAH has become one of the most recognized racing stables in the US and throughout the world and has campaigned in excess of 20 stakes winners and two champions. In 2008, IEAH was the highest grossing stable in the country with over $10 million in race purses earned. It was capped off by many ownership awards and IEAH fell just one vote shy of being awarded United States owner of the year in 2008.
“Joe and I had the same visions for our companies,” added Iavarone. “And knowing one another as we do, we felt that the synergy certainly was right for the two companies to get together. We believe our pinhooking venture, which we began in the summer of 2009 when we purchased a colt by Smart Strike for $200,000, and although the market had fallen on very difficult times, sold for $825,000 the following March, turning a gross profit of greater than 400%, is the perfect vehicle to bring the two companies together.”
Following the success of Smart Strike, IEAH purchased a son of Dixie Union for a modest $145,000. This colt would show all the signs of a good one leading up to the March 2011 Fasig Tipton 2 year old training sale where this colt would be sold for $390,000, representing a gain of nearly 275%. That colt would go on to be named Union Rags and be one of the favorites to win the 2012 Kentucky Derby.
In 2011, IEAH would continue to build on its earlier success. IEAH would purchase a colt by Big Brown for a modest $220,000 at the July Saratoga yearling sale. This colt would then move IEAH's pinhooking operation to the top of the industry as this horse would be the sale's highest priced horse. He would fetch a final bid of $1.3 million dollars, representing a gain of almost 600% and really underlining the value of Big Brown, IEAH's signature horse.
About the ABA
The company's primary business is operating the American Basketball Association, Inc (ABA) (the “League”), a professional basketball league currently composed of nearly 90 independently owned teams located throughout the US and internationally, marketing League-related merchandise and other products and services offered by the Company and the League and developing and expanding media outlets and ancillary entertainment businesses that complement the League's operations.
The League was created with the focus of gaining acceptance as a fan-pleasing entertainment experience that emphasizes basketball skills and fast-paced games at affordable prices. It is also the most diversified professional sports league ever with 75% of its teams owned by African-Americans, Hispanics, Asians and women. The current ABA continues the original ABA tradition of innovation in its efforts to bring diverse, fan-friendly, exciting basketball to its fans. Management believes that the ABA name remains synonymous with innovative and spirited basketball, the 3 point play, Julius “Dr. J” Irving, George “Iceman” Gervin and other legends all which have contributed significantly to the growth and development of professional basketball as it has become known throughout the world.
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