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Tuesday, January 08, 2008

On The Auction Block?

- This may be a telling passage, from a story regarding the possibility of the 20% of Curlin owned by the phen-fen plaintiffs being put up for auction:

An attorney for Jess Jackson, the founder of Kendall-Jackson Winery and owner of Stonestreet Stables, and his wife, Barbara Banke, who own 80% of Curlin, said in court documents that until the issue is resolved, it is impossible to sell the horse or the breeding rights.

"Some of the best and most viable purchasers will not consider such a transaction while this problem exists," attorney Richard Getty wrote, declining to name the potential buyers or price. [Bloodhorse]
Hard to tell whether the attorney's statement indicates that Jackson has indeed tried to shop the horse to breeders. The 412 plaintiffs are seeking to have their $42 million judgment against Midnight Cry satisfied. But even if the horse is valued as high as, say, $40 million, their 20% will only bring them a fraction of what they're owed. Plus the $445,000 in winnings that have already accrued.

3 Comments:

Superfecta said...

Great minds think alike today -- I'm thinking this one could go either way. It could just be lawyer-speak to get things moving, or it could be the real deal.

Anonymous said...

I still say they could run it through an auction if they chose. This is the preferred method by the courts.

Would cost them the commission to get the minority partners out.

Glimmerglass said...

I would think that George Bolton's stake purchase last month sets the barometer for what this remaining piece is worth.

If that isn’t high enough for the attorney of the plaintiffs sure they might look for top dollar on the auction block. Still if Jess offered $5 - $6M they'd be smart to take it. [$25 - $30M total value]

It's a massive gamble that maybe someone is willing to take by paying more at auction and hope for a successful revenue stream over the years from breeding.

Then again those same people put up the (then) world record syndication for Spectacular Bid what did that get them? And Curlin on the tack is no Bid folks.

It is certainly easy to spend other people's money but even $8M to Jess Jackson is a fraction of what he's poured into his overnight racing kingdom and just a rounding error in his net worth.