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

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Mylute
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Wed Jan 22, 2020 7:09 pm

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Diver52
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Wed Jan 22, 2020 7:15 pm

How can you lose so much money without ever building yourself a safety net? If I'd owned AP I would have managed to live within my means! 'but of course the "smart" business people prefer to lose other people's money, don't they. . . .
I ran marathons. I saw the Taj Mahal by Moonlight. I drove Highway 1 in a convertible. I petted Zenyatta.
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Kurenai
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Wed Jan 22, 2020 7:48 pm

I am wondering how someone who is apparently that bad with money can become rich... :roll:
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Northport
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Wed Jan 22, 2020 8:10 pm

Man, this guy has been on the brink of bankruptcy for 10 years. I get that 1% of the owners actually make money in this sport, but how can the owner of stallions like Pioneerof the Nile, American Pharoah, Bodemeister, etc. still be living in the red.

Is he still active at any of the yearling sales?
weeeeeeeee
TapitsGal
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Wed Jan 22, 2020 8:14 pm

It's not like this is a surprise..no secret that the guy is a dirtbag..I've never forgiven him for the stunts he pulled with thorn song..and poor poor nehro
Horsebagger
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Wed Jan 22, 2020 9:19 pm

Northport wrote:
Wed Jan 22, 2020 8:10 pm
Man, this guy has been on the brink of bankruptcy for 10 years. I get that 1% of the owners actually make money in this sport, but how can the owner of stallions like Pioneerof the Nile, American Pharoah, Bodemeister, etc. still be living in the red.

Is he still active at any of the yearling sales?
https://en.wikipedia.org/wiki/Gamblers_Anonymous ?
Catalina
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Wed Jan 22, 2020 9:39 pm

Diver52 wrote:
Wed Jan 22, 2020 7:15 pm
How can you lose so much money without ever building yourself a safety net? If I'd owned AP I would have managed to live within my means! 'but of course the "smart" business people prefer to lose other people's money, don't they. . . .
This time, I suspect, his goose may be cooked.
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Mylute
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Wed Jan 22, 2020 10:03 pm

How hard is it to note lose a million dollars?
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Kelly Ann
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Thu Jan 23, 2020 12:36 am

I'm stuck at the sheer cojones it took to sell those shares in AP under the radar like he did, and then enlist the family to lie thru their teeth. How desperate and/or deluded do you have to be to think that was ever going to fly? It's not some random stallion, it's American flipping Pharoah. Of course they were going to check up on THAT. :roll:

Standup guy

I already knew he was shady, but wow... next level shade.

If he's able to stay in the business, without it being cash up front, I give up.

Good lord.
TapitsGal
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Thu Jan 23, 2020 12:54 am

Pharoah may have been the horse that caused them to catch him but there's rumors that Pharoah isn't the only horse he sold shares of..and would the buyers who bought the shares be considered innocent parties in this? And as majority owners, I can't imagine shares of Pharoah being secretly sold off would go over well with Coolmore...would they be required to honor those breeding shares?and accept the mares those shareholders submit to him? And per Lexington herald:

"Zayat also is accused of secretly selling off and hiding proceeds from the sale of assets related to other horses including Bodemeister, Eskendereya, American Cleopatra, Grammajo, Danyelli, Lezendary, Old Glory, Lemoona, Amandrea, Ash n’ Em, Majid, El Kabeir, Zensational, Justin Philip and Prayer for Relief."
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Falinadin
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Thu Jan 23, 2020 1:26 am

It'll be interesting to see what happens with the other horses because myracehorse.com purchased 55% of Amandrea in fall of '19... and I bought a microshare of her. I wouldn't think that the purchasers would be at fault in the shady dealings if they bought the horses/shares in good faith.
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Flanders
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Thu Jan 23, 2020 1:51 am

TapitsGal wrote:
Thu Jan 23, 2020 12:54 am
Pharoah may have been the horse that caused them to catch him but there's rumors that Pharoah isn't the only horse he sold shares of..and would the buyers who bought the shares be considered innocent parties in this? And as majority owners, I can't imagine shares of Pharoah being secretly sold off would go over well with Coolmore...would they be required to honor those breeding shares?and accept the mares those shareholders submit to him? And per Lexington herald:

"Zayat also is accused of secretly selling off and hiding proceeds from the sale of assets related to other horses including Bodemeister, Eskendereya, American Cleopatra, Grammajo, Danyelli, Lezendary, Old Glory, Lemoona, Amandrea, Ash n’ Em, Majid, El Kabeir, Zensational, Justin Philip and Prayer for Relief."
Its against the law to sell anything you have staked as collateral on a loan. The bank can repossess anything he sold that was used as collateral and then sue both him and the buyer if they choose to do so. He sold 2 shares to LNJ Foxwoods and the rest to Coolmore.

A lot of the other stallions were sold years ago though. Zensational hasn't stood in the US since 2014, Eskendereya was sold in 2015, El Kabeir was sold in probably late 2017. American Cleopatra was sold before her 2018 foal was born. Lezendary and Majid were the horses the trainer sued him over last summer right? I wonder if when they settled out of court he just gave the trainer the horses? I see that Majid is owned by Repole now but Lezendary hasn't raced again. I guess they didn't check in to see if he still owned the horses because he was paying his loan payment on time until September? They didn't buy any horses at all in 2019 but spend about $5.2 million on yearlings/2yos in 2018.
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Mylute
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Thu Jan 23, 2020 7:56 am

They also have got some foals and IIRC are expecting a few this year.

So Ahmed sold some of his shares in AP (and other boys) quietly without the others and Coolmore knowing, possibly even microshares? Were the buyers under the impression it was a legitimate sale, or do we know yet?

And he also somehow got the family to lie?
"I'm here, free as the wind, fountain of extraordinary knowledge, splendidly corrupt, and eager to be of profitable service."
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Horsebagger
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Thu Jan 23, 2020 10:12 am

Some thoughts...

Let's not cry for the lenders who were stupid enough to get into bed with these guys again, including their degenerate head of household. They get what they deserve. Seperately, it might be a sign that the market is getting a little too frothy again? Proceed with caution, people.

But let's make an educated guess and read the tea leaves.... I assume bankruptcy #2 is now inevitable. When that happens, it's the little guys again who likely pay the price, the farms, the feed vendors, the vets, the blacksmiths, van companies, etc, while AZ gets to protect his homes, cars, separate LLCs from the creditors and reinvent the legacy down the line when the smoke clears and the lenders absorb their write-offs.

Curious how that MBA from NYU is helping Justin 'run the company' (not well, obviously) and whether he throws up when the sheriff arrives with the summons when they are sued. Or maybe he had the foresight to take Bankruptcy Law as an elective one semester and felt inoculated from public and industry shame? Is there a '30 under 30' list for Bankruptcies someone can nominate him for? Will he tweet a photo of himself and the Receiver posing in front of his AP swag when he/she shows up at his office before he seizes it an sells it for cash?

He and his father get zero room on this as far as i'm concerned. Disgusting parasites leaving a trail of debts in their wake. AGAIN!!! But not a shock they've been awful quiet on Twitter for a while......until of course another good horse falls into their laps and we need to be told how great their program is, participate in naming an animal and how to purchase his daughters jewelry line.

Some though, may suggest it's very 'Presidential' of them. Remind you of anyone?? :roll:
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Kelly Ann
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Thu Jan 23, 2020 1:35 pm

Mylute wrote:
Thu Jan 23, 2020 7:56 am
They also have got some foals and IIRC are expecting a few this year.

So Ahmed sold some of his shares in AP (and other boys) quietly without the others and Coolmore knowing, possibly even microshares? Were the buyers under the impression it was a legitimate sale, or do we know yet?

And he also somehow got the family to lie?
Coolmore bought 7 of the 9, so they definitely knew they were sold. Now did they have any inkling the breeding rights weren't in the free and clear though? It's not exactly like a car or a house where there is a lien on the title anyone can see since it's right on there. For horses? For breeding rights?

And curious, given that they -own- AP, if the breeding rights are in jeopardy, are they going to actually lose anything? Or just breed the 7 mares to the stallion they own?

*Total layman questions/curiosity, I am a babe in the woods when it comes to breeding contracts and breeding laws, rights and the like.
BallyAche60
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Thu Jan 23, 2020 1:45 pm

Horsebagger,
You summed it up succinctly. Remember Scott Blasi's description of Zayat during the Peta witch hunt? It may have been a gender offensive phrase, but an opinion shared by many.
BTW, great closing line.
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Flanders
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Thu Jan 23, 2020 2:15 pm

Kelly Ann wrote:
Thu Jan 23, 2020 1:35 pm
Mylute wrote:
Thu Jan 23, 2020 7:56 am
They also have got some foals and IIRC are expecting a few this year.

So Ahmed sold some of his shares in AP (and other boys) quietly without the others and Coolmore knowing, possibly even microshares? Were the buyers under the impression it was a legitimate sale, or do we know yet?

And he also somehow got the family to lie?
Coolmore bought 7 of the 9, so they definitely knew they were sold. Now did they have any inkling the breeding rights weren't in the free and clear though? It's not exactly like a car or a house where there is a lien on the title anyone can see since it's right on there. For horses? For breeding rights?

And curious, given that they -own- AP, if the breeding rights are in jeopardy, are they going to actually lose anything? Or just breed the 7 mares to the stallion they own?

*Total layman questions/curiosity, I am a babe in the woods when it comes to breeding contracts and breeding laws, rights and the like.
I've honestly no idea. I'm sure they'd breed 7 mares to him either way. The thing is, the bank can sue and end up owning the 7 shares. Then Coolmore would have to sue Zayat to get the money back. Its a mess. But any dealings with Zayat seem to be a mess. Why anyone would loan him money after he filed for bankruptcy in 2010 is beyond me.
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Diver52
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Thu Jan 23, 2020 3:08 pm

Horsebagger wrote:
Thu Jan 23, 2020 10:12 am
Some thoughts...

Let's not cry for the lenders who were stupid enough to get into bed with these guys again, including their degenerate head of household. They get what they deserve. Seperately, it might be a sign that the market is getting a little too frothy again? Proceed with caution, people.

But let's make an educated guess and read the tea leaves.... I assume bankruptcy #2 is now inevitable. When that happens, it's the little guys again who likely pay the price, the farms, the feed vendors, the vets, the blacksmiths, van companies, etc, while AZ gets to protect his homes, cars, separate LLCs from the creditors and reinvent the legacy down the line when the smoke clears and the lenders absorb their write-offs.

Curious how that MBA from NYU is helping Justin 'run the company' (not well, obviously) and whether he throws up when the sheriff arrives with the summons when they are sued. Or maybe he had the foresight to take Bankruptcy Law as an elective one semester and felt inoculated from public and industry shame? Is there a '30 under 30' list for Bankruptcies someone can nominate him for? Will he tweet a photo of himself and the Receiver posing in front of his AP swag when he/she shows up at his office before he seizes it an sells it for cash?

He and his father get zero room on this as far as i'm concerned. Disgusting parasites leaving a trail of debts in their wake. AGAIN!!! But not a shock they've been awful quiet on Twitter for a while......until of course another good horse falls into their laps and we need to be told how great their program is, participate in naming an animal and how to purchase his daughters jewelry line.

Some though, may suggest it's very 'Presidential' of them. Remind you of anyone?? :roll:
For once, these two great minds think alike.
I ran marathons. I saw the Taj Mahal by Moonlight. I drove Highway 1 in a convertible. I petted Zenyatta.
katmandu
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Thu Jan 23, 2020 4:14 pm

I've heard it said that great mistakes think alike. . . . .
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Mylute
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Thu Jan 23, 2020 6:11 pm

Kelly Ann wrote:
Thu Jan 23, 2020 1:35 pm
Mylute wrote:
Thu Jan 23, 2020 7:56 am
They also have got some foals and IIRC are expecting a few this year.

So Ahmed sold some of his shares in AP (and other boys) quietly without the others and Coolmore knowing, possibly even microshares? Were the buyers under the impression it was a legitimate sale, or do we know yet?

And he also somehow got the family to lie?
Coolmore bought 7 of the 9, so they definitely knew they were sold. Now did they have any inkling the breeding rights weren't in the free and clear though? It's not exactly like a car or a house where there is a lien on the title anyone can see since it's right on there. For horses? For breeding rights?

And curious, given that they -own- AP, if the breeding rights are in jeopardy, are they going to actually lose anything? Or just breed the 7 mares to the stallion they own?

*Total layman questions/curiosity, I am a babe in the woods when it comes to breeding contracts and breeding laws, rights and the like.
I'm currently running on fumes so my brain interpreted this as "Zayat took his shares and illegally sold them to other people without telling anybody but they were still in his name."
"I'm here, free as the wind, fountain of extraordinary knowledge, splendidly corrupt, and eager to be of profitable service."
~ Peter Lorre 1904 - 1̶9̶6̶4̶ ∞
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