Big Brown has Quarter Crack

[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?

[Kasept]

Originally Posted by Danzig

so are they basing the stud deal on the amount of insurance purchased?

The deal "places his value at $50 million".. which means Three Chimneys [may have] paid just $10 million for 20%.

Originally Posted by Danzig

how does that work when they say they've only purchased the breeding rights, rather than just an outright purchase of the horse?

They paid for a percentage of the horse to secure the rights to stand him at their farm after his racing career.

[Danzig]

Originally Posted by Kasept

The deal "places his value at $50 million".. which means Three Chimneys [may have] paid just $10 million for 20%.



They paid for a percentage of the horse to secure the rights to stand him at their farm after his racing career.

when i said 'are they basing it at 50 million' i really was asking about the press, as that's the only number they really have to go by, since three chimneys/ieah aren't really discussing details.

[ELA]

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?

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

[Danzig]

well, thanks. very interesting stuff.