A €110m PROFIT FO
Horse bre John Mag has banke another fortune for simply selling an artwork. So how di he make his wealth
IT seems a safe bet that John Magnier is feeling pretty pleased with himself right now. Even by the international market standards that apply to fine art, he has just had a very impressive result.
Perhaps he has said a private word of thanks to Amedeo Modigliani, an Italian artist who died in abject poverty almost a century ago. Aged 35, Modigliani only staged one solo exhibition and frequently had to resort to trading his work for meals in restaurants. Which, of course, makes it even more ironic that he has just helped boost the fortune of one of Ireland’s richest men.
One of Modigliani’s canvases, Nu Couché (Sur Le Côté Gauche), became the fourth most expensive painting ever sold at auction when it fetched more than $157million — €132million — at Sotheby’s in New York two weeks ago. It had last changed hands a decade and a half ago for just over $27million.
The sale was yet another milestone in the career of billionaire Magnier, who accumulated a fortune through the bloodstock industry and decades of canny investments. But it is only a very small part of his story.
Magnier, who turned 70 earlier this year, was born into a well-to-do family of landowners near Fermoy, Co Cork. He was sent as a boy to Glenstal Abbey, the Benedictine boarding school in Co Limerick where annual fees now top the €19,000 mark.
Following the death of his father, the young John left school at the age of 15 to take over the family’s stud and dairy farm. But he was ambitious to expand the business and, by the early 1970s, had bought Castlehyde Stud, adjacent to the estate owned by Michael Flatley.
Magnier — a tall, dapper man with a penchant for trilbys and contrastcollar shirts — also began fostering important contacts. He entered into a business relationship with the late British pools heir Robert Sangster, who was a powerful figure in racing circles. But the publicity-shy Magnier’s links to legendary trainer Vincent O’Brien were to prove particularly
He left school at 15 to take over the family stud farm
crucial. There were close ties between the two families dating back years — O’Brien’s three-in-a-row Cheltenham Gold Cup winner Cottage Rake had been sired by one of Magniers’ stallions.
Meanwhile, Magnier’s mother Evie was matron of honour at O’Brien’s wedding in 1951. And John himself went on to marry O’Brien’s daughter Sue and have five children together.
It was early 1975 when Magnier made the move to Coolmore Stud in Fethard, Co Tipperary, where his father-in-law had become a partner two years previously. He was, said O’Brien, ‘the most capable young man in Europe for the job’.
O’Brien went even further in his praise. ‘He is a man of exceptional ability; he thinks big, deals shrewdly, and is most knowledgeable about bloodlines and everything to do with the stud business,’ he remarked.
‘John is so able I feel he would have reached the top of whatever profession he chose, and our very close association has been the greatest pleasure to me — it is a joy to work with someone of his calibre.’
Even at the age of 27, Magnier had big vision. In a rare interview, he outlined the philosophy that ultimately turned Coolmore into a global brand: ‘We have got to avail ourselves of the outside markets and stand stallions which will have international appeal as well.’
Which, of course, is exactly what he did. He set about identifying and acquiring potential champion horses at a younger age than they were usually bought — and, with the help of his father-in-law’s expertise and Sangster’s cash reserves, turning them into winners.
But that wasn’t all. Whereas successful stallions had previously been sent to stud in the States on their retirement, Magnier was keen to keep them in Ireland.
The fact that earnings from stallions were exempt from tax here — courtesy of a provision introduced by Charles Haughey in the late 1960s — was a welcome bonus.
In the years that followed, Coolmore became the world’s largest breeding
ground of thoroughbreds. Customers included Queen Elizabeth II and the Aga Khan.
Among the famous horses to call it home have been Sadler’s Wells, Danehill and Be My Guest. Now valued at €4billion, Coolmore also has operations in Kentucky and New South Wales, Australia.
But John Magnier’s extraordinary wealth hasn’t come entirely from the equine industry.
As demonstrated by last Monday’s jaw-dropping auction result in New York, he has also become one of the world’s most adept art collectors.
Among his areas of interest are 18th century British paintings and 20th century Irish art. His collection includes Joshua Reynolds’s celebrated Portrait of Omai as well as works by Jack Yeats.
He has also amassed wealth through currency trading, as well as buying corporate and government bonds.
Other business interests include the five-star Sandy Lane resort in Barbados, which he owns in partnership with his close friends and associates JP McManus and Dermot Desmond.
Magnier also has a 20% stake in the British nursing home group Barchester. Along with McManus, he has a 23% share of Mitchells & Butlers, which is Britain’s biggest pub group and is valued at €1.8billion.
Around 18 months ago, the pair sold an office and retail building on the exclusive Place Vendome in Paris — next to the Ritz Hotel — for €1billion, reportedly making a profit of €350million.
Perhaps his most famous business venture, though, involved former Manchester United manager Alex Ferguson. It began when Ferguson was named as half-owner of the champion racehorse Rock of Gibraltar.
When the horse retired in November 2002, a dispute arose over any future returns. Ferguson claimed he was due 50% of all stud fees, but Magnier insisted that the manager’s involvement was over as soon as the horse stopped racing.
There was a 14-month stand-off, during which Ferguson reportedly demanded £110million (€126million in stud fee earnings and a further £10million to cover legal bills and lost income).
It is understood that he eventually accepted a settlement in the region of £2.5million (€2.8 million).
Both Magnier and McManus were already shareholders in Old Trafford. But they increased their stake during the legal battle in an apparent bid to unnerve Ferguson and increase the pressure on him.
Despite keeping a low profile, Magnier enjoys the good life. He is a keen golfer and has a taste for fine wines and expensive cigars.
His property portfolio includes a €30million villa in Marbella, as well as townhouses in London and Geneva. Regular lunch guests at his Tipperary home have included composer Andrew Lloyd Webber, a long-time neighbour.
But the real jewel is his coral stone mansion in Barbados. The magnificent seafront property, called Laughing Waters, is surrounded by a 12ft wall and has a cinema, fully-equipped gym, tennis courts and a swimming pool.
Nor, it seems, is Magnier shy about spending his considerable wealth. When his daughter Katie got married in Fethard in 2002, the celebrations are estimated to have cost up to €3million.
The bride’s dress was specially commissioned from Ralph Lauren and each of the nine bridesmaids wore Vera Wang gowns. Among the guests at the reception — held in a giant marquee on three levels in the grounds of Coolmore — were Albert Reynolds, Charlie McCreevy, Ryanair boss Michael O’Leary, model Jodie Kidd and jockey Frankie Dettori. Musical entertainment was provided by Rod Stewart and Ronan Keating.
At the Moriarty Tribunal, Magnier acknowledged that he had donated £20,000 to a medical fund set up for the late Brian Lenihan senior. But he added that he wanted to ‘emphatically say that Mr Charles Haughey never approached me directly or made any personal requests for funds for either himself the Fianna Fáil party or the Brian Lenihan fund’.
According to reports, Magnier and Haughey first met in the early 1970s through racing circles and mutual acquaintances. Haughey later sent a significant number of his own mares to Coolmore.
Even so, there was surprise among political observers when the Fianna Fáil leader appointed Magnier to the Seanad in 1987.
When Haughey died 12 years ago, Magnier paid tribute by noting that ‘the transformation of Irish bloodstock breeding from a cottage industry in 1969 to a world-class one today can be largely attributed to his far-sightedness and strategic thinking’.
It was a rare public statement from John Magnier. Nor, it seems, when he was any less taciturn during his three years as a member of the Oireachtas. Official records show that he only spoke in the chamber on three occasions.
It seems he instead prefers to allow his investments to do the talking — with art dealers around the world no doubt only too delighted to listen.
The wedding is thought to have cost €3million