How can Big Brown not run again, if this is true?

[PaceAdvantage]

The enrichment will continue, though a knowledgeable source in Lexington claims that Three Chimneys Farm, where Big Brown will stand at stud, purchased a 10 percent interest for $5 million, which may have technically established his total worth at $50 million but like all things IEAH, is not what it seems.So IEAH has only received $5M for BB to date? If that's true, then there is no way in hell he retires now.

http://paulmoranattheraces.blogspot.com/2008/06/belmont-denial-of-slicksters.html

[cj's dad]

It seems like the deception/misinformation just goes on and on and............

[PaceAdvantage]

It seems like the deception/misinformation just goes on and on and............I'm not sure where the deception comes from, or the misinformation for that matter. The only time I've ever heard a member of IEAH talk about the deal that was made, was on TV before the Preakness. And when asked about specifics of the deal, Ivarone said on camera that he could not discuss the specifics.

So, where did the $50M number come from?

[PaceAdvantage]

The DRF recently ran a story that contained this line on May 31:

Clay hopes he will be waiting for another undefeated Triple Crown winner in the fairly near future, now that Three Chimneys has secured the right to stand Kentucky Derby and Preakness winner Big Brown at stud in a deal that is believed to put the stallion prospect's value at about $50 million.Obviously, the above does not mean Three Chimneys has actually paid $50M to IEAH. 10% at $5M does indeed put the stallion prospect's value at about $50M (pre-Belmont). Obviously, that value was lowered on Saturday. And since no other breeding operation has paid them a dime, it's probably in IEAH's best interest to get BB back on the track and winning races again....

[Imriledup]

You can't shout from the mountaintops that there's nothing wrong with this horse, then retire him. Seems like BB will be running again at some point.

[Tom Barrister]

Time will tell. I still think the retirement announcement will be coming in the near future. For what it's worth, I hope I'm wrong.

[Tom]

So what is the result of all of this?
Has BB helped or hurt racing?
I have my opinion.

[cj]

I'm not sure where the deception comes from, or the misinformation for that matter. The only time I've ever heard a member of IEAH talk about the deal that was made, was on TV before the Preakness. And when asked about specifics of the deal, Ivarone said on camera that he could not discuss the specifics.

So, where did the $50M number come from?

IEAH valued the horse at $50M because they sold 10% for $5M. They were assuming, falsely, that they could sell the rest for the same price. They tend to inflate the value of their horses. I say falsely because even before the Belmont the other 90% remained unsold. Why? I can only surmise they couldn't get that price.

I forget the value I saw them place on Kip Deville, but it was ludicrous. He is a turf miler. We all know they are such valued commodities in the breeding shed. :rolleyes:

[sally]

So what is the result of all of this?
Has BB helped or hurt racing?
I have my opinion.
I think the connections have hurt racing-- and I think this year's whole triple crown race has hurt racing because of the unfortunate death of Eight Belles. The average public tunes in to watch the triple crown races and sees a horrible breakdown and then hears about steriod use, sees a jerk of a trainer insult every other horse in the races, and then BB falls on his face-- (so to speak)... no wonder they were booing-- this year has been a letdown, shall we say...

[cj's dad]

I'm not sure where the deception comes from, or the misinformation for that matter.


It just seems to me that nothing has been on the level with these guys from day one. It's the perception I have and for that I offer no apologies.

[Marshall Bennett]

So what is the result of all of this?
Has BB helped or hurt racing?
I have my opinion.
Doubt that one bad race will sway the undecided one way or the other . Racing was already in a bad way for some time . The filly breaking down probably cancelled out whatever good BB brought to the game . We need a BB story nearly every year if we ever plan on getting ahead with lots of new folks .

[Cangamble]

The values of horses go up and down all the time. They valued the horse at 50 million after the Preakness, and one group came in and thought they were right.
Just like when the group bought into BB. A value was made and a percentage was sold.
The question is, what is his value right now?
I said that running him in the Belmont could only hurt his value. I think I was right big time on that call.
Most people disagreed here vehemently.

[riskman]

This published before the Belmont. Rough article---and the graphics !


http://www.nytimes.com/2008/06/07/opinion/07fornatale.html

[DrugS]

I forget the value I saw them place on Kip Deville, but it was ludicrous. He is a turf miler. We all know they are such valued commodities in the breeding shed. :rolleyes:

Especially when they are sired by Kipling and had only modest success on the track until transfered to Dutrow.

[JustRalph]

It could have been worse. They could have come out and said they named the horse after Queen Latifah

[sally]

This published before the Belmont. Rough article---and the graphics !


http://www.nytimes.com/2008/06/07/opinion/07fornatale.html

that "correction" at the bottom says a lot-- only 50 offenses, not 72!!

[LottaKash]

It seems like the deception/misinformation just goes on and on and............

Lots of mystery and intrigue, haha........I still say STINKO. to all the parties involved with BB..........what a scam they are purporting........sorry, boys no one is buying your line of crap......Champion...haha........

[PaceAdvantage]

Champion...haha........Are you of the opinion that BB is not the division leader right now?

[classhandicapper]

If you sell 10% of something for $5 million, the implied value IS $50 million. That's the way it's done on Wall St. That does not mean the value can't change if your company misses its next earning report or your horse gets eased in the Belmont etc....

[cj]

If you sell 10% of something for $5 million, the implied value IS $50 million. That's the way it's done on Wall St. That does not mean the value can't change if your company misses its next earning report or your horse gets eased in the Belmont etc....

Maybe on paper, but they obviously coudn't sell the rest at that price. Now, they won't get close.

[LottaKash]

Are you of the opinion that BB is not the division leader right now?


With all due respect, what I saw on Belmont Sat. was just mystifying to me, I mean until all the mystique is cleared, I will remain skeptical......

Personally, given the connections history, all is not right in Pleasantville......

Big Brown did what he did and that is history, and it all was very impressive, and that would put him squarely on top of the heap, until that infamous sat....and, given the amount of money at stake for the shedrow issue, I still have probable cause, as in this recent part of this century, with Enron etc., well, anything is possible......There are countless big-time unprescedented scams that have been uncovered of late, and I just feel in my gut, that this will join the "Club of Reavers"...

Honestly, everyone, how do you really feel about that Sat.? Really? Do you REALLY think it was a bounce?

If that were true, then the trainer with the help of the track-vet, and with the good of racing in mind, it would easily have been possible to SCRATCH this horse......instead, many people's millions of dollars, were blown to the wind, for who knows what reason.....On a daily basis so many horses are scratched for lesser things and reasons.

The trainer, the Jockey and who knows who else, did not do the right thing, that's all.....Stinko.....

best,

[classhandicapper]

Maybe on paper, but they obviously coudn't sell the rest at that price. Now, they won't get close.

Exactly. BB missed his quarterly earnings report badly. :lol:

Had he won by 10, the value might actually have increased.

[Moyers Pond]

They reported they could get a $300k fee for a TC winner. Probably a little high, but it isn't crazy. Right now, he just joins the Hard Spun crowd. Probably around $50K. The loss probably cost IEAH 30-40 million in value. The only way they can some of that back is in the BCC. Even with a win in that he could never fetch more than $100K to start. The Belmont really was worth tens of millions to IEAH.

[WJ47]

With that kind of money at stake, it may have been prudent to scratch Big Brown before the Belmont after he developed the quarter crack in his hoof. Everyone would have assumed he would have won the triple crown if only he hadn't been injured. His value would have stayed up there. But with that humiliating performance in the Belmont, I've got to think his value plummeted by many millions of dollars. I'd be sick if I were IEAH.