Report: Zayat Sued for $23 Million, Sold Shares in American Pharoah

jjacks1
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Thu Jan 23, 2020 6:39 pm

Crooked is as crooked does.
Seriously, this guy must have one heck of a gambling problem. I remember Fifth Third suing him back in the day. I had (erroneously) thought that with Justin joining up things might calm down but evidently the Zayat's are kinda like the Mafia. (No offense to any Italians intended.)
I forgot about Thorn Song but I will never forget poor Nehro.
So Zayat must have had advice for breeding, right? How did this clueless guy manage to breed the first Triple Crown winner in 37 years? Someone must have told him or was it just dumb luck?
greyhorse
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Thu Jan 23, 2020 7:29 pm

jjacks1 wrote:
Thu Jan 23, 2020 6:39 pm
Crooked is as crooked does.
Seriously, this guy must have one heck of a gambling problem. I remember Fifth Third suing him back in the day. I had (erroneously) thought that with Justin joining up things might calm down but evidently the Zayat's are kinda like the Mafia. (No offense to any Italians intended.)
I forgot about Thorn Song but I will never forget poor Nehro.
So Zayat must have had advice for breeding, right? How did this clueless guy manage to breed the first Triple Crown winner in 37 years? Someone must have told him or was it just dumb luck?
And grade 1 winner Jaycito, allowed to be claimed and eventually drop down for a tag in New Mexico. As Zayat said at the time about another horse (paraphrased): "You have to hold onto the good ones when you get them."
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Flanders
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Thu Jan 23, 2020 8:22 pm

jjacks1 wrote:
Thu Jan 23, 2020 6:39 pm
Crooked is as crooked does.
Seriously, this guy must have one heck of a gambling problem. I remember Fifth Third suing him back in the day. I had (erroneously) thought that with Justin joining up things might calm down but evidently the Zayat's are kinda like the Mafia. (No offense to any Italians intended.)
I forgot about Thorn Song but I will never forget poor Nehro.
So Zayat must have had advice for breeding, right? How did this clueless guy manage to breed the first Triple Crown winner in 37 years? Someone must have told him or was it just dumb luck?
He bought both Pioneerof The Nile and Littleprincessemma as yearlings. I think it was just dumb luck. Pioneerof The Nile went to stud in 2010, that was the first year she was bred as well but she went to Maimonides. She was then bred to POTN in 2011 and was actually entered in the Keeneland November sale but ended up being an out while she was carrying American Pharoah. I wonder if the breeding was done simply because they were thinking of selling her. Then when they liked the foal she produced they sent her back to him.

Justin was in all the stuff as well as the rest of the family members. They all knew what they were doing because if you go through the link to the lawsuit, they all had to transfer their personal breeding rights to Zayat to secure the loan originally and they had to sign everything. Then they all sold their individual breeding rights.
TapitsGal
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Fri Jan 24, 2020 11:45 am

"Meanwhile, the status of Zayat's operation has some trainers wondering what's next.

"My bookkeeper was supposed to have a phone call with Justin Zayat this morning,"´said Robertino Diodoro, who trains four horses for the Zayats. "I think there are more than a few of us that are nervous now. I guess it could have been worse for us earlier last year when we had 12."

Diodoro indicated he felt there was some problem going on with Zayats, but "I didn't think it would be this big. It is not a good situation for everyone involved, especially the Zayats."

How could he be so clueless or in the dark that he doesn't know Zayat has had money problems for years? Is he just new to the game and didn't know any better? And how can Zayat say he's blindsided by this? Is denial just the name of his game(if I recalled he denied knowing about the problems with Nehro at the time which I never bought into..generally owners call the shots and a trainer can't retire a horse without at least having some discussion with the owner)..Zayat is just digging himself a bigger hole.
Horsebagger
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Fri Jan 24, 2020 12:11 pm

Ouch.....Receiver appointed likely as a condition of whatever loan agreement he signed to get this latest 'funding'. Generally, not good for the future for Zayat Stables, both short term and long, for anyone in the family, not just Ahmed and Justin. Anything considered as potential collateral just got locked up beyond their immediate reach and ……….

Prepare for the disbursement sale, it's most likely inevitable at this point. If he aggressively contests the efforts of the lenders to get repaid, the floodgates will open on the public disclosure of where all the money went, and I guarantee HE DOES NOT WANT THAT TO COME OUT.

And even worse for AZ's gambling fix, as cash is not going to be easily available. Although we already know betting on credit thru various nefarious online avenues isn't beyond his reach or appetite. But that comes with some personal physical risks more than the corporate/legal ones.

Ground Hog day, as it seems we went through this once before. This time, as owners of a Triple Crown winner, it's going to be all over major network news, before long.

Buckle Up, Zayats. Rough water ahead, and it's going to be Public.
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Kurenai
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Fri Jan 24, 2020 12:50 pm

So he sold AP for 23 millions... and shortly afterwards went to the bank to get a 25 million loan.... Even with his alleged gambling problem that makes no sense, why take out a loan if you just got 23 million bucks? And who in their right mind would give someone a loan that was already filing for bankruptcy not so long ago?
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Flanders
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Fri Jan 24, 2020 1:25 pm

Kurenai wrote:
Fri Jan 24, 2020 12:50 pm
So he sold AP for 23 millions... and shortly afterwards went to the bank to get a 25 million loan.... Even with his alleged gambling problem that makes no sense, why take out a loan if you just got 23 million bucks? And who in their right mind would give someone a loan that was already filing for bankruptcy not so long ago?
Because its not enough for them. They go through money like its water. He supposedly got $280 million from the sale of the beer/beverage company he owned in Egypt in 2002. Zayat had already defaulted on a $34 million loan by December 2009. So in less than 7 years they blew through over $300 million?
Horsebagger
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Fri Jan 24, 2020 1:36 pm

Kurenai wrote:
Fri Jan 24, 2020 12:50 pm
So he sold AP for 23 millions... and shortly afterwards went to the bank to get a 25 million loan.... Even with his alleged gambling problem that makes no sense, why take out a loan if you just got 23 million bucks? And who in their right mind would give someone a loan that was already filing for bankruptcy not so long ago?
See my comment above regarding him not wanting the story to come out about where the money went. although they screwed themselves by selling the horse well before he won the Triple Crown. Most likely those proceeds went to pay off prior existing debts associated with their prior issues, which cleaned the balance sheet enough for this next lender to step in and feel comfortable with extending them more credit. Again, just an educated guess.

Question: Does anyone think Ahmed and/or Justin wake up in the morning to go to a job and earn a salary that's NOT associated with Zayat Stables performance?? Thus any debt is almost exclusively underwritten against Zayat Stables assets, INCLUDING mortgages (although they will also be liened against the real estate, of course)
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Flanders
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Fri Jan 24, 2020 2:31 pm

Horsebagger wrote:
Fri Jan 24, 2020 1:36 pm
Kurenai wrote:
Fri Jan 24, 2020 12:50 pm
So he sold AP for 23 millions... and shortly afterwards went to the bank to get a 25 million loan.... Even with his alleged gambling problem that makes no sense, why take out a loan if you just got 23 million bucks? And who in their right mind would give someone a loan that was already filing for bankruptcy not so long ago?
See my comment above regarding him not wanting the story to come out about where the money went. although they screwed themselves by selling the horse well before he won the Triple Crown. Most likely those proceeds went to pay off prior existing debts associated with their prior issues, which cleaned the balance sheet enough for this next lender to step in and feel comfortable with extending them more credit. Again, just an educated guess.

Question: Does anyone think Ahmed and/or Justin wake up in the morning to go to a job and earn a salary that's NOT associated with Zayat Stables performance?? Thus any debt is almost exclusively underwritten against Zayat Stables assets, INCLUDING mortgages (although they will also be liened against the real estate, of course)
I found another article from around the time that this loan would have been taken, where he was taking out another significant loan from a different investment company. What could he have to put up as collateral, it seems he put everything they owned to secure the MGG loan.

And like what does this mean? He is driving around Asia trying to get people to give him money??
"At this meeting, Mr. Zayat and MGG agreed to meet again in mid-January 2020 upon completion of Mr. Zayat’s capital raising roadshow in Asia."
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Kelly Ann
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Fri Jan 24, 2020 2:38 pm

"I was totally blindsided," Zayat said Thursday. "I have not even been served yet."
Sure he was. I'm sure that nasty, mean old company just snuck in like a thief in the night and did an oogie boogie. :roll:

As fascinating as it is to watch from a purely trainwreck rubbernecking on the highway sense, god I wish this man would go away. Racing is doing a bang up job all on it's own giving itself black eyes in recent months, it realllllly didn't need a Zayat assist.

That said, am I reading this right, that he appears to have made his entire family complicit in this, that's just.... sleaze on a new level. I'm telling myself that they had no idea AP's breeding rights were tied up, that their father kept them in the dark, rather than think about some gambling degenerate convincing and teaching his children to cheat. Except Justin...hard to justify Justin being unaware, given how involved with the racing side of things he is.

Class act. Just a class act on a genetic level.

It raises an ethical question going forward, should this all prove out to be true.. and the gambling problem is just blatant.. if people continue to finance his lifestyle, his stable.. should they be culpable in some way. Like giving alcohol to an alcoholic, knowing the end result. Likely not, just something for me to chew on as I wait for 5 o'clock.
stark
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Fri Jan 24, 2020 2:40 pm

Horsebagger wrote:
Fri Jan 24, 2020 12:11 pm
If he aggressively contests the efforts of the lenders to get repaid, the floodgates will open on the public disclosure of where all the money went, and I guarantee HE DOES NOT WANT THAT TO COME OUT.
What pray tell could that be? Just your educated guess of course.

He's been getting gambling lessons from Mattress Mac?
He's been giving arms away to some Middle East bad guys?
He's been picking up the consulting bills for Justin meeting with Caitlyn Jenner?
He's being threatened by Avanati and Stormy Daniels et al?
He's bankrolling Tom Steyer?
I've found it easier to tear up tickets at 8/1 instead of 8/5.
Horsebagger
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Fri Jan 24, 2020 2:48 pm

stark wrote:
Fri Jan 24, 2020 2:40 pm
Horsebagger wrote:
Fri Jan 24, 2020 12:11 pm
If he aggressively contests the efforts of the lenders to get repaid, the floodgates will open on the public disclosure of where all the money went, and I guarantee HE DOES NOT WANT THAT TO COME OUT.
What pray tell could that be? Just your educated guess of course.

He's been getting gambling lessons from Mattress Mac?
He's been giving arms away to some Middle East bad guys?
He's been picking up the consulting bills for Justin meeting with Caitlyn Jenner?
He's being threatened by Avanati and Stormy Daniels et al?
He's bankrolling Tom Steyer?
Nice deflection.

The point is that someone perpetrating financial fraud on a lender is likely to have multiple skeletons hiding in the closet. See POTUS for examples.
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Kurenai
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Fri Jan 24, 2020 4:03 pm

Flanders wrote:
Fri Jan 24, 2020 1:25 pm
Because its not enough for them. They go through money like its water. He supposedly got $280 million from the sale of the beer/beverage company he owned in Egypt in 2002. Zayat had already defaulted on a $34 million loan by December 2009. So in less than 7 years they blew through over $300 million?
Even more disturbing, who in their right mind would give him a loan. :lol: If the average Joe goes into the bank, he has to jump through all the hoops and would never get one with a history like Zayat. Banks nowadays never give out loans, even if you have a stable income but your job contract is restricted to 3 years and then gets renewed. If you don't own a house or expensive car you're screwed.
lurkey mclurker
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Fri Jan 24, 2020 8:20 pm

This thread should come with popcorn. Or at least the popcorn.gif ...

Image
stark
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Sat Jan 25, 2020 2:18 pm

lurkey mclurker wrote:
Fri Jan 24, 2020 8:20 pm
This thread should come with popcorn. Or at least the popcorn.gif ...

Image
I had a dream that these same contributors showed an equal amount of articulate passion while discussing handicapping the next big race, the Triple Crown etc.
Like I said, just a dream. ;)
I've found it easier to tear up tickets at 8/1 instead of 8/5.
Horsebagger
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Sat Jan 25, 2020 4:22 pm

stark wrote:
Sat Jan 25, 2020 2:18 pm
lurkey mclurker wrote:
Fri Jan 24, 2020 8:20 pm
This thread should come with popcorn. Or at least the popcorn.gif ...

Image
I had a dream that these same contributors showed an equal amount of articulate passion while discussing handicapping the next big race, the Triple Crown etc.
Like I said, just a dream. ;)
Tax
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Mylute
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Tue Jan 28, 2020 7:16 pm

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jjacks1
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Tue Jan 28, 2020 8:32 pm

TapitsGal wrote:
Tue Jan 28, 2020 6:22 pm
https://www.paulickreport.com/news/the- ... een-filed/

This guy's something else
And something else again! The poor, poor Zayats - I feel for them SO deeply. Always innocent but always being accused of these underhanded dealings! How tortured their poor lives must be! :roll:

PS - we really need one of those barfing smilies for his topic.
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