Zayat’s bankruptcy filing could make waves
WHILE Hall of Fame trainer Bob Baffert was celebrating his record-tying sixth Kentucky Derby victory this week, one of his former clients was plumbing the depths of the other end of horse racing’s experiential spectrum.
Ahmed Zayat, 58, who bred and owned the Baffert-trained 2015 Triple Crown winner American
Pharoah and many other top racehorses of recent years, filed for Chapter 7 bankruptcy protection Tuesday in New Jersey.
In the filing, first reported by the Thoroughbred Daily News, Zayat claimed $19.38 million in liabilities versus estimated assets of $1.89 million. He said he currently has access to only $300 in cash and $14.22 in two checking accounts.
It lists Zayat’s racing operation, known as Zayat Stables, as having assets of approximately $4 million and total secured debt of $22 million and an additional $4 million in unsecured debt, most of which Zayat labeled “disputed.”
Zayat’s predicament stems from Zayat Stables’ ongoing legal battle with MGG Investment Group, a New York-based company that loaned Zayat Stables tens of millions of dollars. MGG, which filed a lawsuit seeking $23 million, asked a judge in February to put the operation under control of a court-appointed receiver because it claimed assets used as collateral for the loans were being sold without MGG being notified.
Among the assets Zayat was accused of selling were lifetime breeding rights to American Pharoah, with MGG saying he secretly sold nine spots on the calendar of last year’s leading U.S. freshman sire and pocketed $3.3 million in proceeds, rather than putting the money toward paying back his loans.
A judge in Kentucky issued a summary judgment stating that Zayat Stables had breached its contract
and denied a motion to exclude Ahmed Zayat and his son, Justin, who has been active in his father’s racing operation, from the fraud claims.
The bankruptcy filing is expected to reverberate throughout the racing industry as those unsecured debtors include trainers, including Baffert, feed and transportation companies, veterinary clinics and others who are collectively owed millions.
It’s not clear what became of the many millions of dollars generated by American Pharoah, who stands at Ashford Stud in Kentucky for a private stud fee reportedly in excess of $200,000 per assignation. We’ll learn more in the months ahead as new details emerge in court.
#Rjhorseracing featured races
The #Rjhorseracing handicappers are spending another week in
Kentucky, venturing from Louisville to Franklin for a day of unique racing at Kentucky Downs, the only U.S. racetrack that conducts racing exclusively over an undulating European-style turf track. On the betting menu: The $500,000 Juvenile Turf Sprint and the $700,000 Turf Sprint.
The handicapping crew is taking a stand in the former, a 6 1/2-furlong race for 2-year-olds, and backing County Final, the 9-2 third choice on the morning line, over 2-1 morning line favorite Outadore and the timely-named Fauci (5-2) for place and show.
I’m parting ways with my peeps and backing Fauci to win, figuring the stakes experience gained in his last start gives him a slight edge over stablemate Outadore, both of whom are trained by Wesley Ward. I’ll take Perfect Mistake (20-1) to show based on his lovely turf pedigree.
In the Turf Sprint, a 6 furlongs Grade 3 dash 3-year-olds and up, the crowd ‘cappers are supporting the lukewarm 9-2 morning line favorite Totally Boss narrowly over Imprimis (8-1), who was disqualified last month from a win in the Troy Stakes at Saratoga. They have Stubbins (61) picking up the show dough.
I agree that Totally Boss, the defending champ in this race, is the one to beat, but I’ll try with Stubbins, who is reunited with jockey Joel Rosario, who rode him to victory in a Grade 2 stakes not long back. I’ll take Totally Boss for the place and 15-1 long shot Richiesinthehouse, who figures to lead early, to show.