Doubling the DWC to 12 million, WOW!!!

[SniperSB23]

Originally Posted by Scav

You can look at the other side, where he is pumping tons of money into the American industry by buying those horses, assuming the people that are selling, are putting that money back into the industry. It isn't like he is charging ridiculous amounts of money for his stallions either, they are all priced at the right level.

I to would love to see some of these horses continue to race, but the very fact that YEARLINGS sell for a million dollars at the sales prevents that, there is just too much money in the breeding side. WHEN THAT evens out, meaning when racing = breeding, then you will have an even industry.

All this industry is doing, is what every other industry in America is doing, consolidating....

They are creating a bubble economy Scav. The yearlings are selling for a million dollars to a lot of people hoping to be able to sell them to Shiekh Mo for $10 million off a maiden win. They aren't worth that million without the possibility of selling them to Shiekh Mo. A lot of people think that Shiekh Mo stopping spending money in America would be a disaster because the bubble would pop. And yeah, a lot of people in the industry that are thriving off that bubble would take a hit. In the long run though it might be the best thing for the sport for that breeding bubble to burst.

[Scav]

Originally Posted by SniperSB23

They are creating a bubble economy Scav. The yearlings are selling for a million dollars to a lot of people hoping to be able to sell them to Shiekh Mo for $10 million off a maiden win. They aren't worth that million without the possibility of selling them to Shiekh Mo. A lot of people think that Shiekh Mo stopping spending money in America would be a disaster because the bubble would pop. And yeah, a lot of people in the industry that are thriving off that bubble would take a hit. In the long run though it might be the best thing for the sport for that breeding bubble to burst.

I couldn't agree with you more. But it is NO DIFFERENT then something like the housing economy in the US.

[SniperSB23]

Originally Posted by Scav

I couldn't agree with you more. But it is NO DIFFERENT then something like the housing economy in the US.

The big difference is that the entire bubble is being created in large part by one person.

[Scav]

Originally Posted by SniperSB23

The big difference is that the entire bubble is being created in large part by one person.

There are 4 people creating that bubble.

I don't want it to look like I am defending this guy, because personally, I can care less what goes on over there, although it does look like a cool place to visit.

I just think that people are missing the big picture, what the industry as a whole is doing.

[SniperSB23]

Originally Posted by Scav

There are 4 people creating that bubble.

I don't want it to look like I am defending this guy, because personally, I can care less what goes on over there, although it does look like a cool place to visit.

I just think that people are missing the big picture, what the industry as a whole is doing.

Take the one with the limitless resources out of the picture and the spending by the other three drops dramatically. I think you are underestimating just how much money this guy has and how much the economy of Dubai is making him each year. The money won't run out, he gets virtually none of it from oil anymore so won't even be impacted if we somehow reduced our dependance on oil.

[Scav]

Originally Posted by SniperSB23

Take the one with the limitless resources out of the picture and the spending by the other three drops dramatically. I think you are underestimating just how much money this guy has and how much the economy of Dubai is making him each year. The money won't run out, he gets virtually none of it from oil anymore so won't even be impacted if we somehow reduced our dependance on oil.

Those three players could easily get together and say you know what ENOUGH IS ENOUGH, but they won't do it because they also have 'a war chest'.

Money is no object to these people, and those people eventually get smoked. And trust me, when you are losing 200 million a year on bad investments, while a drop in the bucket for some, you still don't have 200 million, even if it is just a bathroom to these people...

[SniperSB23]

Sheikh Mo's net worth is $14 billion. He spends $50 million on a horse and it is the equivalent of someone with a net worth of $100,000 spending $357 on a horse. So Shiekh Mo can buy a $50 million stallion easier than I can buy a share in Sumwonlovesyou.

[GBBob]

Originally Posted by SniperSB23

Take the one with the limitless resources out of the picture and the spending by the other three drops dramatically. I think you are underestimating just how much money this guy has and how much the economy of Dubai is making him each year. The money won't run out, he gets virtually none of it from oil anymore so won't even be impacted if we somehow reduced our dependance on oil.

You're right...I understand Scav's analogy, and Team Valor may equal Bud, etc, but Sheik Mo is on an entirely different level than ANY of the other players. He is DRIVEN by his thinking that his people are the rightful heirs and owners of thoroughbreds in general and horse racing in particular. He can rationalize anything by this philosophy. He isn't driven to win this race, or own that horse, he wants to bring the breed and the sport back to where he feels it rightfully belongs. It's almost religous in nature and common sense can't compete with that. Sure, there are some ancillary "good" things and charitable things along the way, and Eurpopean racing benefits as does American on a certain scale. But to say he's just a rich dude buying horses underestimates his end game, IMO.