While Baffert celebrates, ex-client Zayat hits rock bottom
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.
Unique situation
Owner of Triple Crown-winning horse American Pharaoh filed for personal bankruptcy protection, seeking to discharge more than $19M of debts.
Ahmed Zayat’s Chapter 7 bankruptcy case, filed in NJ, lists around $1.9M of assets and $19.4M of liabilities.@business— Danielle DiMartino Booth (@DiMartinoBooth) September 10, 2020
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 (6-1) 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.
Mike Brunker’s horse racing column appears Fridays. He can be reached at mbrunker@reviewjournal.com or 702-383-4656. Follow @mike_brunker on Twitter.
Ellis Starr's Kentucky Turf Cup Stakes analysis
There's no doubt Zulu Alpha is the one to beat and therefore a legitimate betting favorite, but I think Hierarchy is up to the task of posting the upset win in this year's Kentucky Turf Cup Stakes. Hierarchy has run two "A" races in a row, arguably the two best races of his career, winning the first of the two then finishing second (beaten a half-length) in the Kentucky Downs Preview Turf Cup Stakes in his most recent start. Both efforts earned Hierarchy 110 Equibase Speed Figures. Zulu Alpha earned a 110 figure nearly winning the Pan American Stakes in March and a 105 figure winning the Elkhorn Stakes in July so Hierarchy fits with the favorite. Additionally, the Kentucky Downs Preview Turf Cup has already become a "KEY RACE", indicated by two or more horses having come back to win since that race. Winner Factor This almost won the Grade 1 Turf Classic last weekend at Churchill, which is not the reason the race is a key race but indicates how productive the race was. The fourth place finisher, Ry's the Guy, won strongly last weekend at Churchill Downs and both the eighth and 11th place finishers have since won. The horse Hierarchy beat for second has not run back yet but with the winner and fourth place finishers having run very well, I think Hierarchy can do the same and win. Jockey Corey Lanerie was up for both recent big efforts and rides back and that's another positive sign. Additionally, Hierarchy put in a strong 4-furlong (:47.8) workout in preparation for this race so he's fit and ready to run big. Last but not least, Hierarchy was entered to run in the $300,000 Tapit Stakes on Wednesday and his trainer (Joe Sharp) opted for this race instead, likely figuring with the horse in top form he could run well enough to win.
Zulu Alpha won the 2019 Turf Cup over Arklow by three lengths but didn't run as well subsequently in the Turf Classic or Breeders' Cup Turf. Rested three months, Zulu Alpha began his 7-year-old campaign with a strong win in the Pegasus World Cup Turf Invitational, earning a career-best 119 figure in the process. After duplicating that figure and effort in the Mac Diarmida Stakes in February, Zulu Alpha lost a heartbreaker in the Pan American Stakes by a neck after battling for the lead the entire last eighth of a mile. Rested 3 1/2 months, Zulu Alpha returned in the Elkhorn Stakes in July and won more decisively than the three-quarter length margin of victory makes it appear. However, his figure did regress to 105 after the 110 in the Pan American. Freshened two months again and proven capable of winning big races off this kind of layoff, Zulu Alpha is certainly the one to beat on paper and, as a horse who shows up every time, I think he has every right to win.
Postulation, Red Knight and Grand Journey are three more with a decent chance to compete at least for the minor awards, and it's not out of the question one of them could post the upset if everything goes their way. Postulation has run 11 times at marathon distances in his career, winning twice and finishing second three times. The most recent of those efforts came when leading from the start in the Elkhorn Stakes before being passed late by Zulu Alpha and finishing three-quarters of a length behind in second. That effort earned a 105 figure, and in 2018 at the distance in the Point of Entry Stakes Postulation earned a 112 figure so a top effort puts him right there with the main contenders. Red Knight won the 2019 Point of Entry Stakes with a 108 figure and was second, beaten a half-length, in the 2019 Elkhorn so he fits at this level and distance. Not seen since finishing fourth of 11 in the McKnight Stakes in January, Red Knight also won the 2 mile H. Allen Jerkens Stakes in 2018 so he's a true "stayer" who must be respected as a contender. Then there's Grand Journey, who will likely be one of the long shots in the field. He started out his career in claiming races but won three straight last spring and summer on the grass, the best of those earning a 107 figure. In his third race of the year this past June, Grand Journey won at the distance of 1 1/16th mile on turf and earned a 105 figure. Trainer Mike Maker claimed the horse from that race then put him in a stakes race on July 8. Although fourth in that race, Grand Journey was beaten a nose and a head for second and tied his previous best 107 figure. Maker, who also saddles Zulu Alpha, has a knack for finding horses he can turn into successful turf stakes runners and I have a suspicion Grand Journey may be one of those and can run better than his high odds suggest he can. North American leading jockey Irad Ortiz, Jr. sees fit to ride and that's significant. Also of significance is the fact that Grand Journey is by Giant's Causeway, who has produced a number of top turf runners, including 2019 Horse of the Year Bricks and Mortar. For those reasons I plan to at least make a win and place bet on Grand Journey at likely very high odds.
The rest of the field, with their best Equibase Speed Figures: American Tattoo (ARG) (110), Arklow (115), Bundibunan (107), Celerity (103), Changi (99), Eons (100), Perfect Tapatino (FR) (107), Standard Deviation (106), Surprise Twist (110) and Tintoretto (GER) (95).
Ellis Starr is the national racing analyst for Equibase. Visit the Equibase website for more on the race or to purchase handicapping products.
