Back to Pedigree Query
It is currently Sun Sep 26, 2021 10:28 pm

All times are UTC - 8 hours [ DST ]




Post new topic Reply to topic  [ 6 posts ] 
Author Message
 Post subject: Authentic to Spendthrift
PostPosted: Mon Nov 09, 2020 2:18 pm 
Offline
Starters Handicap

Joined: Sat Oct 30, 2004 7:45 pm
Posts: 530
Location: New York
Authentic has been retired to Spendthrift Farm. His fee will be $75,000.

_________________
Shawklit Won.


Top
 Profile  
 
PostPosted: Mon Nov 09, 2020 4:13 pm 
Offline
Grade II Winner

Joined: Sat Jan 20, 2007 5:28 pm
Posts: 1322
And someday maybe some of his 5000+ owners may see some of their $206 back. MRH owes a LOT of money because of the kickers. Nine million for the derby and five million I think for the BC. Spendthrift is one of the owners of MRH so they have loaned "themselves" money at 3.5% interest until it's paid off via the income from the stud fee and on track earnings. 12.5% of 75,000 is 9,375 so if there are 100 live foals that's 937,500 + there will be expenses that will reduce that. 1.75 million is what they owe for the two wins but there are other kickers for grade one's etc so if we just took the 1.75 million that would essentially be paid off in two breeding seasons "if" there are in fact 100 live foals but since he's likely to get three year old of the year and HOY that's another three or four million so technically maybe after the third year they might get a few bucks back but even if the 937,500 was going to be distributed to all the owners that still doesn't get them back to $206. I think they actually owed $117 per share from the derby win.

It's amazing how many of the owners think they are going to make money. The ones who already made the money regardless are MRH because every share had a commission based on the assessed value not the price they paid. They netted over 600K when all the shares sold. And they are, to their credit very transparent as they tell you how the cost of the share is derived.


Top
 Profile  
 
PostPosted: Wed Nov 11, 2020 8:42 pm 
Offline
Moderator
User avatar

Joined: Fri Sep 17, 2004 1:53 pm
Posts: 9977
Location: Louisville, KY
I think there are more owners than that. My Racehorse Stable was only a partner. It also looks like My Racehorse Stable only became a partner in Authentic after the Santa Anita Derby, before he ran in the Haskell.

_________________
So Run for the Roses, as fast as you can.....


Top
 Profile  
 
PostPosted: Thu Nov 12, 2020 5:13 pm 
Offline
Grade II Winner

Joined: Sat Jan 20, 2007 5:28 pm
Posts: 1322
Not sure what you're trying to say but maybe I threw out too much math (and I'm really bad at it!)

12.5% ownership was sold to My racehorse. Then, 5314 people (give or take a few) paid 206 each for .0005 percent of Authentic. From EACH share sold to all those people MRH charged a 15% commission.

Somewhere around/near the same time Spendthrift farms purchased a majority ownership OF My racehorse. As BOTH the seller AND BUYER, Spendthrift has loaned MRH the money it owes from all those incentives to themselves at 3.5% that the shareholders are responsible for.

Kickers from the Haskell, the Derby and the BC classic are now owed to the sellers that are close to 2 million for their 12.5% so how is that profitable for anyone but Spendthrift? They will owe more for HOY TO spendthrift.


Top
 Profile  
 
PostPosted: Thu Nov 12, 2020 7:59 pm 
Offline
Grade I Winner
User avatar

Joined: Fri Jan 06, 2006 5:33 pm
Posts: 1695
Partnerships - Great for the people who put them together. For the rest - high risk, less reward.

_________________
Run the race - the one that's really worth winning.


Top
 Profile  
 
PostPosted: Tue Nov 17, 2020 4:37 pm 
Offline
Eclipse Champion
User avatar

Joined: Sun Sep 19, 2004 1:29 pm
Posts: 2433
Tappiano wrote:
And someday maybe some of his 5000+ owners may see some of their $206 back. MRH owes a LOT of money because of the kickers. Nine million for the derby and five million I think for the BC. Spendthrift is one of the owners of MRH so they have loaned "themselves" money at 3.5% interest until it's paid off via the income from the stud fee and on track earnings. 12.5% of 75,000 is 9,375 so if there are 100 live foals that's 937,500 + there will be expenses that will reduce that. 1.75 million is what they owe for the two wins but there are other kickers for grade one's etc so if we just took the 1.75 million that would essentially be paid off in two breeding seasons "if" there are in fact 100 live foals but since he's likely to get three year old of the year and HOY that's another three or four million so technically maybe after the third year they might get a few bucks back but even if the 937,500 was going to be distributed to all the owners that still doesn't get them back to $206. I think they actually owed $117 per share from the derby win.

It's amazing how many of the owners think they are going to make money. The ones who already made the money regardless are MRH because every share had a commission based on the assessed value not the price they paid. They netted over 600K when all the shares sold. And they are, to their credit very transparent as they tell you how the cost of the share is derived.


I'm sure with that many people, someone's bound to not have read the fine print, but a) that's on them and b) everybody I've seen just wanted to have some fun and it's actually a pretty cheap investment compared to some ways there are to entertain yourself. Some guy in the UK or Ireland was talking about how thrilled he was to have this and not have to get out of his boxers. He could watch on tv, have a good time, and brag to his friends.

_________________
"Time flies like an arrow, fruit flies like a banana"
Image


Top
 Profile  
 
Display posts from previous:  Sort by  
Post new topic Reply to topic  [ 6 posts ] 

All times are UTC - 8 hours [ DST ]


Who is online

Users browsing this forum: No registered users and 2 guests


You cannot post new topics in this forum
You cannot reply to topics in this forum
You cannot edit your posts in this forum
You cannot delete your posts in this forum
You cannot post attachments in this forum

Search for:
Jump to:  
Powered by phpBB® Forum Software © phpBB Group