NEWS
Curlin valued at $20-million
Posted: Monday, November 17, 2008 1:12 PM
CURLIN
Adam Coglianese/NYRA photo
by Jeff Lowe and Ed DeRosa
Ric Waldman, a bloodstock adviser and consultant who managed the stallion career of Storm Cat for Overbrook Farm, pegged Curlin’s value at $20-million on Monday in a court hearing in Frankfort, Kentucky.
Waldman testified as an expert witness on behalf of the more than 400 claimants that won a $42-million judgment against Shirley Cunningham Jr. and William Gallion, the disbarred attorneys that own the minority 20% interest in Curlin.
Waldman outlined a projection in which Curlin would stand for $75,000 during his initial season. Dual classic winners Big Brown and Henrythenavigator both will begin their stud careers in Central Kentucky in 2009 with fees of $65,000.
Jackson agreed with Waldman’s appraisal, bidding $4-million for the remaining 20% interest in the colt. The receiver is satisfied with the private offer, but the court must give its approval.
Waldman said Curlin’s value had decreased by 33% from a $30-million appraisal in August. Curlin won the Woodward (G1) and Jockey Club Gold Cup (G1) Stakes in September, but Waldman said the colt’s value dropped due to the general economic instability in the country and related swoon in the bloodstock market.
Jackson said on November 15 that he would not race Curlin as a five-year-old and the Smart Strike colt will be retired to stud for 2009. Jackson said in a statement that he is accepting offers from farms interested in standing Curlin while also considering standing the colt himself at his Stonestreet Farms in Lexington.
Waldman said Stonestreet expects it would cost $1.2-million a year to stand Curlin at Stonestreet, compared with $500,000 a year at an established stallion farm. Waldman said he considered both figures to be high.
Dan Hall, a consultant to Frank Stronach’s Adena Springs breeding operation, which stands 2004 Horse of the Year Ghostzapper in partnership with Jackson, is anticipating Curlin’s fee to eclipse Big Brown’s.
“I wouldn’t want to speculate on what someone else would stand a horse for, but I would assume [Curlin] would stand for more,” Hall said Monday. “Big Brown was a three-year-old and a very good racehorse who, unfortunately, never got the opportunity to be tested against older horses on the main track. As far as accomplishments on the racetrack, Curlin proved himself at three and four.
“I would guess that he would eclipse that figure [$65,000], but what his exact fee would be I don’t know.”
Jackson said that Curlin could race one more time before retiring. He has won 11 of 16 starts and has earned $10,501,800—a record for North American-raced earners.
Judge Roger Crittenden has scheduled another hearing on the 20% interest for December 1, in which any objections can be lodged over the sale proposal. Andre Regard, an attorney for Cunningham and Gallion, said he would object to the price and provide an expert witness who will contend that Curlin is worth more than $20-million.
If Crittenden approves the sale for $4-million, Regard said he would file an appeal.
Regard said Stonestreet secured insurance coverage on Curlin prior to the Breeders’ Cup based on a valuation of $60-million.
“My clients at this point would prefer to get what they believe is market value or to maintain that interest,” Regard said. “Given this situation of the depressed market, perhaps the better option is to maintain the interest in the long run. Everything that has been discussed by Stonestreet in regards to the depression of the value of the horse has been due to their own action or inaction concerning retiring him and announcing a stud fee or location.”
Jeff Lowe is a Thoroughbred Times staff writer; Ed DeRosa is news editor
