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Originally Posted by Danzig
now, i know they insured the horse for 50mill.
no details were given on the stud deal, other than clay saying it's for breeding rights only. so are they basing the stud deal on the amount of insurance purchased?
how does that work when they say they've only purchased the breeding rights, rather than just an outright purchase of the horse?
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It is strictly a breeding rights deal and each deal takes on a life of it's own. The insurance amount has nothing to do with it. The amount of the insurance and the rumored "value" has no correlation, and if it's accurate, it's just coincidence.
Also, allegedly, Clay is not known for putting up large sums of his own money. The Smarty Jones deal was structured this way, and there was an "anchor" partner in the deal. As far as the breeding rights -- it could be anything -- "rights" to stand the horse, securing the horse, syndication, and so on. In this case, I would guess there might be an "anchor" partner who provides "bridge financing" until they can sell shares; although from what I hear, the talk of shares is not a hot topic at this point. Maybe that will change, maybe not. On the other hand, the dollars used to secure the horse could be more long term, until shares are sold, seasons, etc. Who knows how much money was used and paid.
Eric