Zayat Will Be Selling

[Cannon Shell]

Zayat's projections also assume that Zayat Stables' stud fee revenue will increase significantly, from $65,000 in 2010 to nearly $5 million by 2014.

The projections also assume significant income from the stable's racetrack performances. The plan projects four starts per horse for 80 percent of the stable's juveniles and six starts for older runners. "Purse income winnings assume 20 percent placing 1st and 30 percent placing either 2nd or 3rd, the documents stipulate. "The average purse size is assumed to be $38,500 (2010), with 3 percent annual increases thereafter. ... In addition, 2010 assumes large purse wins of $2M and 2011-2014 assumes large purse winnings of $2.5M annually."

For lower-quality runners, the plan projects approximately $500,000 annually in revenue from horses sold through the claim box.

Under the plan, Zayat also intends to continue purchasing bloodstock for the stable. The projections assume bloodstock purchases of $2.5 million, $2 million, $1 million, $1 million, and $1 million in 2010, 2011, 2012, 2013, and 2014, respectively, as well as the birth of approximately 80 foals through 2012 period.


I would not want to be the guy responsible seeing this plan through