American Pharoah’s American Theorem Takes ‘Win and You’re’ In Bing Crosby

American Theorem (American Pharoah), a narrow last out winner of the GII Triple Bend S. at Santa Anita May 29, punched his ticket to the GI Breeders' Cup Sprint with an upset victory in the 'Win and You're In' GI Bing Crosby S. at Del Mar.

Away at 7-1 while looking to provide trainer George Papaprodromou with a first Grade I victory, the runner-up in the 2019 GI American Pharoah S. kept the early leaders within his scope from his outside draw in sixth. He ranged up while five-wide rounding the far turn, hit the front at the top of the stretch and was never seriously threatened by the late rally of Get Her Number (Dialed In). Letsgetlucky (Munnings) was third.

A debut winner at two over the Del Mar main track, the gray ended a nine-race losing streak when cutting back in distance for the seven-furlong Triple Bend. He was a well-beaten sixth in both the GII San Pasqual S. and GI Santa Anita H. earlier this year.

Pedigree Notes:

In four North American crops of racing age, Horse of the Year and Coolmore stallion American Pharoah has 14 graded winners among his 27 black-type winners. American Theorem is the newest of his six Grade I winners, joining that highest-level group of As Time Goes By, Harvey's Lil Goil, Van Gogh (in France), Above the Curve (in France), and Cafe Pharoah (in Japan). A number of different broodmare sire lines are represented among American Pharoah's GISWs, with American Theorem his lone black-type winner out of a Maria's Mon mare. The late Maria's Mon, the source of American Theorem's gray coloring, was a sneaky-good sire who was responsible for two GI Kentucky Derby winners and is broodmare sire of 65 stakes winners.

The unraced Mighty Renee has produced five black-type performers out of her seven foals to race, including another Del Mar graded winner in 2011 GIII Sorrento S. victress Mighty Caroline. Her most recent foal is $210,000 Keeneland September yearling Captain Choochies (Classic Empire), an unraced now-2-year-old colt who worked July 28 at Del Mar, getting three panels in :36.60 (6/15). Mighty Renee's dam was also unraced, while her granddam was MGISW Over All (Mr. Prospector). Over All's extended family includes another Mr. Prospector star in Conquistador Cielo, 1982's Horse of the Year.

Saturday, Del Mar
BING CROSBY S.-GI, $402,000, Del Mar, 7-30, 3yo/up, 6f, 1:08.67, ft.
1–AMERICAN THEOREM, 124, r, 5, by American Pharoah
                1st Dam: Mighty Renee, by Maria's Mon
                2nd Dam: Margy, by Theatrical (Ire)
                3rd Dam: Over All, by Mr. Prospector
1ST GRADE I WIN. ($190,000 RNA Ylg '18 KEESEP). O-Kretz
Racing LLC; B-Sierra Farm (KY); T-George Papaprodromou;
J-Joe Bravo. $240,000. Lifetime Record: 12-4-3-0, $531,967.
*1/2 to Viel Spass (Kitten's Joy), SP-Jpn, $336,462; 1/2 to
Mighty Caroline (Stormy Atlantic), GSW, $140,000; 1/2 to
Cyclogenisis (Stormy Atlantic), MSW, $198,750.
Werk Nick Rating: A+++ *Triple Plus*.
   Click for the eNicks report & 5-cross pedigree.
2–Get Her Number, 122, c, 4, Dialed In–Fancier, by Bernstein.
($45,000 2yo '20 OBSAPR). O-Gary Barber; B-Philip & Brenda
Robertson (KY); T-Peter Miller. $80,000.
3–Letsgetlucky, 122, g, 4, Munnings–My Cinsation, by Cindago.
1ST G1 BLACK TYPE. O-Brown, Edward Rusty J., Klein, Alan P.
and Lebherz, Philip; B-Premier Thoroughbreds LLC (CA);
T-Brian J. Koriner. $48,000.
Margins: 1HF, 4 1/4, 3/4. Odds: 7.80, 7.20, 9.40.
Also Ran: Shaaz, Principe Carlo, Drain the Clock, Diamond Oops, Bagboss, Howbeit. Scratched: Desmond Doss. Click for the Equibase.com chart, the TJCIS.com PPs or the free Equineline.com catalogue-style pedigree. VIDEO, sponsored by TVG.

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Proposed $5M Zayat Settlement Gives Only $30K to ‘Unsecured’ Claimants

The court-appointed trustee in the nearly two-year-old Zayat Stables involuntary bankruptcy case is proposing a settlement in which Ahmed Zayat and his family members would pay $5 million to be allocated between MGG Investment Group and the trustee.

Of that amount, only $30,000 is earmarked to eventually go to “unsecured creditors,” some of whom are Thoroughbred industry participants owed money by Zayat Stables and are much further down the legal pecking order for otherwise getting repaid.

MGG will also get a disbursement from the funds in the bankruptcy trustee's account amounting to $1,025,145.

In return, MGG–the lender that alleged Zayat and his family members obtained a $24 million loan by fraud in 2016 then never repaid it–will issue a “waiver” giving up any further pursuit of the total $27.1 million total amount it had been seeking as a secured creditor.

MGG has also agreed to return $452,500 of the settlement money it gets from the “Zayat Parties” to the trustee, which will provide for the above-mentioned $30,000 “carve-out” that gets set aside to pay unsecured creditors.

The trustee will then be permitted to use $185,981 of that MGG payment to cover “administrative obligations” that the estate has incurred.

“[E]ntry into the Settlement Agreement serves the paramount interest of the creditors of the Debtor's estate,” trustee Jeffrey Testa wrote in a July 26 series of documents filed in United States Bankruptcy Court (District of New Jersey). “Resolution of the claims by and between the Chapter 7 Trustee MGG and the Zayat Parties through the Settlement Agreement represents a successful outcome for the Debtor's creditors.”

Not every creditor is going to agree with the trustee on that “successful outcome” statement.

Drew Mollica, the attorney for New York-based trainer Rudy Rodriguez, told TDN in a phone interview that his client has an unsecured claim of $397,000, and the $30,000 set aside for all unsecured claimants amounts only to a “drop in the bucket” for what Rodriguez is owed.

“Although I don't know all of the details and I'm going to reach out to the trustee, it seems the only carve-out for anybody but MGG is $30,000, Mollica said. “And all of the other unsecured claimants are in the same boat.”

It's important to note that this involuntary bankruptcy petition involving Zayat Stables is different from the Chapter 7 personal bankruptcy claim that the allegedly impoverished breeder and owner of Triple Crown champ American Pharoah initiated Sept. 8, 2020, when he claimed to own just $300 in cash and $14.22 in two checking accounts.

Six days later, on Sept. 14, 2020, an involuntary bankruptcy petition led by Zayat's former financial advisor was initiated against Zayat's family racing business.

Involuntary bankruptcy proceedings are relatively uncommon in United States courts. They are designed to protect creditors, not debtors, and are often filed against companies (as opposed to individuals) as an attempt to get paid when it is believed that a firm is rapidly burning through assets and/or financial malfeasance is alleged.

The trustee could have elected to keep battling MGG to try and whittle down the sought-after $27.1 million. But Testa explained in court documents that the proceedings had reached a point where resistance equated to a losing proposition for the estate.

“Litigation against MGG would involve sufficiently complex legal and factual issues, particularly regarding the substance of complex loan documents and the establishment of lender liability, which would require protracted hard-fought and arduous litigation and significant expert costs,” Testa wrote.

“In addition, as a result of MGG's properly-perfected status and outstanding amounts owed to it, the Chapter 7 Trustee has no encumbered funds to fight such a taxing battle,” Testa wrote.

“As to the Zayat Parties, litigation against them would be equally challenging, demanding, complex, and come at significant additional cost and delay,” Testa wrote. “In addition, based on the litigious history of this proceeding, any judgment obtained would almost certainly be subject to an appeal.

“The Settlement Agreement avoids these obstacles in favor of a prompt and efficient resolution without the need to expend further estate resources,” Testa wrote.

Other family members of Ahmed Zayat (identified in court documents as his wife, Joanne; four children, Justin, Ashley, Benjamin and Emma, plus a brother, Sherif) are on the hook for contributing to the $5-million settlement payment because, Testa wrote, “The Zayat Parties strenuously asserted that to their detriment they provided funds to Zayat Stables in an effort to keep the entity operating [by contributing] approximately $2.5 million more to Zayat Stables than the transfers they had received from Zayat Stables.”

The proposed settlement agreement even includes a section related to who gets the trophies and other racing mementos that the trustee has been storing since their seizure from the under-receivership Zayat Stables offices.

“Zayat and several of the Zayat Parties objected to the removal of the Memorabilia based upon the position that the Memorabilia were not estate property,” Testa wrote.

The trustee added that he now considers that property “abandoned,” which likely means that Zayat can reclaim it.

“So it looks like he keeps the trophies, and the horsemen who earned the trophies get nothing,” Mollica said.

The next step in the process is for the court to approve the settlement. If other parties file an objection by Aug. 16, then an Aug. 23 hearing will take place to hear the objection(s). If no one objects, the court will enter a notice of “no objection” and the settlement will be completed as proposed.

Asked if he would be objecting on behalf of Rodriguez, Mollica said, “I'll know more after I reach out to the trustee. I'll reserve my right.”

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Taking Stock: Justify Moving Early

Coolmore America's Triple Crown winner Justify, a son of Scat Daddy, never raced at two, and he famously became the first unraced 2-year-old since Apollo in 1882 to win the Gl Kentucky Derby.

Midway through July, however, Justify is already represented by a Group 2 winner in Europe and a Grade III winner in North America from his first crop of 2-year-olds, and through Monday he sat second by less than $30,000 on the first-crop sire list by progeny earnings behind Spendthrift's Bolt d'Oro (Medaglia d'Oro), a rival he defeated by three lengths in the Gl Santa Anita Derby. So far, he leads all freshman sires by black-type winners, black-type horses (three), and graded winners–a quick start at stud for a physically massive and late-starting horse who got 12 furlongs with ease in an undefeated, but compressed six-start career that lasted a brief four months, from February to June at age three.

Despite size, a late track debut and the ability to run as far as 3-year-olds are asked to go on dirt in North American Grade l races, Justify had exceptional balance and speed, his trainer Bob Baffert said by phone Monday morning between a training break. “He was a big, powerful horse–he looked like a giant Quarter Horse is what he looked like. A big, beautiful, massive, balanced horse. As big as he was, he was so light on his feet. He didn't hit the ground hard at all. He just floated over this track.”

Baffert said he didn't get Justify until after the Breeders' Cup, which is why the big chestnut didn't race at two. He'd been purchased for $500,000 at Keeneland September by WinStar, China Horse Club and SF Bloodstock. According to a report in New York Times, the colt had surgery on a stifle before he was sent to Baffert. “When I got him, he was a sound horse,” Baffert said. “My assistant Mike Marlow, who had him at Los Alamitos, kept telling me he had a really good one down there named Justify, by Scat Daddy.”

In comparing Justify to Triple Crown winner American Pharoah (Pioneerof the Nile) and champion Arrogate (Unbridled's Song), three of his best, Baffert said: “Pharoah's mechanics were extraordinary, the way he would move and the way he would work. Let's say Pharoah maybe had more speed, you know, quicker, but the thing about Pharoah and Justify, on Breeders' Cup, they could have won the Sprint, the Mile and the Classic. That's how good they were. Arrogate, he could have won only the Breeders' Cup Classic. That's the kind of horses they were. And Arrogate going a mile and a quarter, he was a beast of a horse. But Pharoah and Justify, they did things effortlessly.”

Bred by John D. Gunther, Justify is out of Stage Magic, a daughter of champion Ghostzapper–another brilliantly fast racehorse who could have won the Gl BC Sprint and Gl BC Dirt Mile in addition to the Gl BC Classic that he did win, keeping to Baffert's analogy. As it was, Ghostzapper won the Gl Vosburgh at 6 1/2 furlongs and the Gl Metropolitan H at a mile.

Ghostzapper, however, wasn't precocious, making only two starts at two, in November and December at that. Neither was Stage Magic, who won her first race at three, in September.

In contrast, Justify's male line–the sequence Scat Daddy/Johannesburg/Hennessy/Storm Cat/Storm Bid–is noted for early maturity and speed, with each horse named a Grade l/Group 1 winner at two. Each horse in this line except for Storm Cat also stood at Ashford (Coolmore America), and Coolmore has collected some of Scat Daddy's best sons because of its belief in the sire line. In addition to Justify, Coolmore stands Mendelssohn, who recently had his first winners, and Caravaggio, whose oldest foals are three, at Ashford, and it has No Nay Never, who stood for €125,000 this spring, and Sioux Nation, with first-crop juveniles, in Ireland. All five were winners at the highest level. Additionally, Coolmore also stands Group l winner Ten Sovereigns (Ire) (No Nay Never) and Group 2 winner Arizona (Ire) (No Nay Never) in Ireland.

From this group, No Nay Never, a champion first-season sire like Scat Daddy, and Caravaggio, who had 26 winners from his first crop of juveniles last year, have already emerged as sires of early maturing speed horses, and just last week each was represented by a Group l winner: Alcohol Free (Ire), first in the Darley July Cup S., for the former; and Tenebrism, winner of the Prix Jean Prat, for the latter. Meanwhile, Sioux Nation has 17 first-crop 2-year-old winners so far. Throw Justify's two group/graded winners into the mix and this is quite a collective showing for Coolmore's young sons of Scat Daddy, who died prematurely at age 11 in 2015, but not before getting some talented sons who appear to have the ability to carry his name forward in tail-male.

Justify's Group/Graded Winners

Both Coolmore and Baffert have played a part in Justify's early success. The filly Statuette, who won the G2 Airlie Stud S. at the Curragh June 26, is a homebred for the Coolmore partners and Merriebelle Stable. Her dam, Immortal Verse (Ire), by Pivotal (GB), was a multiple Group 1-winning miler who once defeated Goldikova (Ire), and she made headlines when selling for the equivalent of $8 million at Tattersalls December in 2013. Before Statuette, she produced the previously mentioned Tenebrism, who's trained like Statuette by Aidan O'Brien for the same ownership and was also a Group 1 winner at two last year.

If not for a matter of a day, Baffert would be the breeder of Just Cindy, winner of the Glll Schuylerville at Saratoga last Thursday for owner/breeder Fred Mitchell's Clarkland Farm and trainer Eddie Kenneally.

Baffert purchased the filly's dam, Jenda's Agenda, a stakes winner of $173,475 by Proud Citizen, for $90,000 at Keeneland November in 2018 to use for one of his breeding rights.

“I'm always looking for mares to breed because I have those stallions,” Baffert said. “I had Donato [Lanni] look at her. He said she was on the small side, but she looks good. I saw a picture of her. She was a good race mare that was all speed going a mile, so I bought her.”

Baffert had her covered by Justify in early 2019 and shipped her to California, where he wanted to foal her in the state-bred program.

“Come December, I thought, 'You know what, what am I doing?' I put her in Keeneland January and sent her to Kentucky and figured she has to bring $300,000. She just didn't get any action,” Baffert said.

The mare was a $325,000 RNA for consignor John Sikura's Hill 'n' Dale.

“Then, Boyd Browning of Fasig-Tipton says, 'I can sell that mare for you.'”

Baffert entered the mare in the Fasig-Tipton February sale Feb. 10-11 that year.

“Then, Johnny Sikura calls me up and says, 'Bob, I can't take the mare over there. She's all bagged up, waxed up and she's gonna drop. You don't want her to foal in the sale ring. You're gonna have to take her out [of the sale].' I said, 'Alright, I'll take her out.' Then, on the second day of the sale, I get a call from Fred Mitchell. He goes to John's barn and says, 'Where's that mare?' I told him I took her out of the sale because she's probably going to foal tomorrow. He asked me what I wanted for her, and I told him, and he said okay,” said Baffert. “I bought the mare sight unseen and Fred brought the mare sight unseen, and we did the deal on a handshake, very rare these days. Fred Mitchell knows good horses and he raises them right.”

The mare foaled Just Cindy Feb. 12, and she became her sire's first graded winner in North America and his first on dirt, with Mitchell's Clarkland the official breeder of record.

That's quite the story.

   Sid Fernando is president and CEO of Werk Thoroughbred Consultants, Inc., originator of the Werk Nick Rating and eNicks.

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American Pharoah Set To Pick Up Another Japanese Winner

In this continuing series, we take a look ahead at US-bred and/or conceived runners entered for the upcoming weekend at the tracks on the Japan Racing Association circuit, with a focus on pedigree and/or performance in the sales ring. Here are the horses of interest for this Sunday running at Fukushima and Kokura Racecourses:

Sunday, July 17, 2022
1st-FKS, ¥9,900,000 ($71k), Maiden, 2yo, 1150m
ADVANCE PHAROAH (c, 2, American Pharoah–Fair Huntress, by Tiznow) turned in a promising debut when runner-up going seven furlongs at Tokyo June 19 (see below, SC 12) and has every right to improve for the effort. A $140,000 Keeneland September yearling purchase by trainer Hideyuki Mori, the chestnut is out of an unraced half-sister to Grade III winner Devil By Design (Medaglia d'Oro), the dam of GI American Oaks winner Competitionofideas (Speightstown), who was purchased by Shadai Farm for $1.3 million at Fasig-Tipton November in 2020. B-John D Gunther & American Pharoah Syndicate (KY)

 

 

3rd-KOK, ¥9,900,000 ($71k), Maiden, 2yo, 1000m
ART PEPPER (c, 2, Frosted–Tim's Girl, by Broken Vow) appeared not to handle the turf when finishing well down the field on career debut June 12 and connections will be hoping a switch to the main track will do the trick here. Purchased by Mori for $150,000 at KEESEP last fall, the gray is out of a daughter of the stakes-winning Rich Find (Exploit), whose daughter Heavenly Hellos (Overanalyze) recently took out the Horseshoe Indianapolis S. Rich Find was also responsible for Grade I-placed juvenile filly Broken Spell (Broken Vow), herself the dam of SW Lord Dragon (Oxbow). This is also the extended family of Eight Belles (Unbridled's Song). B-Lemon's Mill LLC (KY)

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