IEAH still whining, threatening to go to Haskell

[Cannon Shell]

Originally Posted by philcski

Check, check, check.



In my opinion the problem with this game at the highest levels again goes back to the breeders. They always have to find an excuse on why he's not the superhorse they paid $50 million for, to justify their horrifically bad investment to potential shareholders/buyers of stud duty. You know and I know he's an excellent horse who had a bad day, and don't really need an explanation in this case. When he returns we can draw a line through the race, and see what that leaves.

except in this case they didnt really pay 50 million for him. My totally non scientific poll of friends who breed horses found virtually no one willing to breed to this horse for a big ticket. I dont know that there was that much actual demand for the horse as a stallion. Much of the 50 million dollar figure may have served more as a recruiting tool for future investors than real money.

[ELA]

For those interested in the stallion aspect of this deal -- nobody paid or got $50m. The farm "bought" the breeding rights, as a % of the ownership, based upon $50m.

According to people in the industry, principals, there was not strong indications of interest for shares in this horse. Many who might have been interested wanted to wait and see how the "rest of the story played out" so to speak.

Just look at the economics -- the stud fee, which drives the share price; the # of mares he would have to breed and (what most tend to forget about) the # of mares in foal, the # of live foals (all formulaic for the syndication), and so on. Now, those #'s just fell apart. For it to be feasible, he has to come back and make the Belmont a "draw a line through it" race.

Eric

[ELA]

Originally Posted by Cannon Shell

except in this case they didnt really pay 50 million for him. My totally non scientific poll of friends who breed horses found virtually no one willing to breed to this horse for a big ticket. I dont know that there was that much actual demand for the horse as a stallion. Much of the 50 million dollar figure may have served more as a recruiting tool for future investors than real money.

Excellent point.

Eric