07/09/2024
My involvement and investment with My Race Horse
has far exceeded my expectations!
Seize the Grey Breeding Rights
Over the past couple of months we have had a number of stallion farms reach out to inquire about Seize the Grey. Winning the Pat Day Mile and the Preakness in the span of two weeks certainly stamped him as a legitimate stallion prospect. Although his effort in the Belmont was a bit disappointing, it did not seem to lessen the interest from the stud farms. We have been in discussions with several stud farms and, as of just minutes ago, signed an agreement with Gainesway Farm. It is a deal that could be worth over $12 million if Seize the Grey earns the kickers, or performance bonuses, available to us. We did want the opportunity to stay in on his stallion career, so we have retained 10% equity in his breeding.
The deal is predicated on a $3.5-million base valuation that increases by the following amounts for the listed milestones:
· $3 million for a Travers win
· $4 million for Breeders’ Cup Classic win
· $2 million for another Grade 1 win (not named above)
· $1 million if he’s named champion 3-year-old
“Seize the Grey has everything to be a successful stallion, including the pedigree, the physical and the on-track accomplishments,” said Michael Behrens, CEO and founder of MyRacehorse. “We wanted to make sure he was at a farm and with a team that gave him every chance to thrive as a stallion and that’s exactly what we get with Antony Beck, Brian Graves and the entire team at Gainesway.”
There will be more specifics and details to come, but there are three very important deal points we wanted to share:
1. We only sold his breeding rights, not his racing rights, which means the horse does not transfer to Gainesway until his racing career is over. We did agree to certain conditions as to when that racing career ends, and the breeding career begins, and will share details in the coming days.
2. We have decided to sell 90% of Seize the Grey’s breeding rights and will be staying in for 10% to allow us to have some additional financial upside, support him with mares, and go on what we think will be an incredible journey with Seize the Grey’s second career.
3. The inspection process was finalized this morning and has been deemed satisfactory and the bill of sale was then executed. A payment of $3,150,000 (90% of base purchase price) is to be transferred on July 20th. MRH will have a shareholder distribution prepared and delivered by no later than July 29th.
Again, there will be additional specifics and details to come over the next few days, but we wanted our owners to hear this exciting news first before it was announced to the press.
