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https://www.ft.com/content/3eac84ab-ae6e-4fdd-b55f-965f0e334f50
Apollo Global Management has lent millions of pounds secured against assets including racehorses and stables to a company owned by football “super agent” Kia Joorabchian, as the private capital group continues its push into European sport.
The US firm has extended £40mn to Joorabchian’s Sports Invest Holdings, charging an interest rate of 10.25 per cent, corporate filings show.
The debt is secured against a number of the agent’s companies including AMO Racing, AMO Stables and Sports Invest UK, a branch of Joorabchian’s management group that works with footballers “from youth to international level”, according to documents filed with Companies House.
These assets provide security to Apollo, which could potentially force a sale of them if Joorabchian, who has brokered deals including the £142mn British record transfer of Philippe Coutinho from Liverpool to Barcelona in 2018, defaults on the debt.
As well as doing his own business with the private capital group, Joorabchian is actively looking for sports deals to pass to Apollo.
https://www.ft.com/content/3eac84ab-ae6e-4fdd-b55f-965f0e334f50
Apollo Global Management has lent millions of pounds secured against assets including racehorses and stables to a company owned by football “super agent” Kia Joorabchian, as the private capital group continues its push into European sport.
The US firm has extended £40mn to Joorabchian’s Sports Invest Holdings, charging an interest rate of 10.25 per cent, corporate filings show.
The debt is secured against a number of the agent’s companies including AMO Racing, AMO Stables and Sports Invest UK, a branch of Joorabchian’s management group that works with footballers “from youth to international level”, according to documents filed with Companies House.
These assets provide security to Apollo, which could potentially force a sale of them if Joorabchian, who has brokered deals including the £142mn British record transfer of Philippe Coutinho from Liverpool to Barcelona in 2018, defaults on the debt.
As well as doing his own business with the private capital group, Joorabchian is actively looking for sports deals to pass to Apollo.
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so , if a big sales purchase or two prove to be useless then some star footy player has to move clubs to compensate for this ? sounds like it !
So RP's headline is:
Kia Joorabchian reveals billion-dollar investment fund is major investor in Amo Racing
Amo is borrowing money at 10.25% - seems to me a high risk loan yet buying expensive yearlings with little likelihood of large returns for 2 years with most of them ending up over hurdles.
So the deputy news editor of the RP can't tell the difference between an investment and a high risk loan.
Kia Joorabchian reveals billion-dollar investment fund is major investor in Amo Racing
Amo is borrowing money at 10.25% - seems to me a high risk loan yet buying expensive yearlings with little likelihood of large returns for 2 years with most of them ending up over hurdles.
So the deputy news editor of the RP can't tell the difference between an investment and a high risk loan.
Apollo have had the best of the deal.
Kia will never outsmart Coolmore and will never be able to sustain a financial battle with the Arabs either
Kia will never outsmart Coolmore and will never be able to sustain a financial battle with the Arabs either
A loan to buy horses is seen as an investment by the Racing Post. This is one twist too far, surely, even if it's been used as a red herring to promote horse ownership.
I wonder if the banks would entertain an advance/a loan to buy horses to compete with Coolmore from the most wealthy poster here. An interest rate of 10.25% per annum is stiff, which usually reflects the risks of the borrower and collateral used to secure the loan; a £2m cash loan @10.25% per annum = £205k per annum.
Good luck Kia!
I wonder if the banks would entertain an advance/a loan to buy horses to compete with Coolmore from the most wealthy poster here. An interest rate of 10.25% per annum is stiff, which usually reflects the risks of the borrower and collateral used to secure the loan; a £2m cash loan @10.25% per annum = £205k per annum.
Good luck Kia!
I think it's the owner Kia. Without Kia no trainer will be needed.
It is an investment.
Whether it is a wise investment is open to much debate,implausible
Whether it is a wise investment is open to much debate,implausible
Impossible as always lacking understanding of the story, thinking the investments etc are for horseflesh solely. Most brothel owners have fingers in other pies impossible, not all invested in the flesh!!
You always have to wonder at seven digit money paid for yearlings.
Are the buyers trying to buy a horse to make a profit?
Surely not.
There are no stats to help you figure out if it is or is not a good idea to pay big money.
If it was a good idea there would be stats produced by the auction houses to show it is a good idea.
Is the lack of information an oversight by the industry?
I analaysed all the 2,109 yearlings offered at a major yearling sale a few years back.
I looked up the names the yearlings were given, their racing runs, wins, placings, ratings, earnings.
A few interesting facts:
29 of the top 30 most expensive earned 3.5% (a 96.5% loss) of their auction cost on the racecourse (I excluded one who ran in Hong Kong where prizemoney is 10 times higher).
One horse was bought back back by his owner as it seems the experts were not interested.
That horse won 20 races, 18 of them Group races.
My guess is people spending big money are not motivated by returns on the racecourse.
Are the buyers trying to buy a horse to make a profit?
Surely not.
There are no stats to help you figure out if it is or is not a good idea to pay big money.
If it was a good idea there would be stats produced by the auction houses to show it is a good idea.
Is the lack of information an oversight by the industry?
I analaysed all the 2,109 yearlings offered at a major yearling sale a few years back.
I looked up the names the yearlings were given, their racing runs, wins, placings, ratings, earnings.
A few interesting facts:
29 of the top 30 most expensive earned 3.5% (a 96.5% loss) of their auction cost on the racecourse (I excluded one who ran in Hong Kong where prizemoney is 10 times higher).
One horse was bought back back by his owner as it seems the experts were not interested.
That horse won 20 races, 18 of them Group races.
My guess is people spending big money are not motivated by returns on the racecourse.
The top echelon of horseracing owners are driven by wealth, status, elitism, prestige and competition. They just want to be the best of the best, and are not afraid to spend enormous amounts of money to be top amongst themselves. This is not a financial reward exercise, only status and prestige.
I would add in money laundering and tax evasion to ur list impossible, i look at some of the figures paid and it's completely beyond comprehension . Peter Harris is one owner who lays out absolutely huge amounts with very little returns to me at least
Mill Stream standing at Yeomanstown Stud (IRE) for €12,500.
A good first crop for the stallion and Mr Harris could be adding to his already vast wealth.
A good first crop for the stallion and Mr Harris could be adding to his already vast wealth.
And, Mr Wylie who did not even occupy top ownership spot at Closutton. Mr Ricci does. I think post the Pheonix Thoroughbred debacle horseracing authorities around the world have been more vigilant and resourceful in determining where the funds come from at auctions.
Taxation is an inducement to partake in horseracing for the very rich to achieve a higher status, prestige and possibly more wealth. For instance if Frankel was owned by the likes of you or I. We'd be elevated to 'billionaire' status from obscurity within our lifetime.
Taxation is an inducement to partake in horseracing for the very rich to achieve a higher status, prestige and possibly more wealth. For instance if Frankel was owned by the likes of you or I. We'd be elevated to 'billionaire' status from obscurity within our lifetime.
Can only seem this ending in tears. Apollo will no doubt have the loan insured and any sign of default on payments will bring the axe down fast.
The Bloke must be on the biggest ego trip of his life or mad with delusion.
Hope he his paying is training fees on time.
The Bloke must be on the biggest ego trip of his life or mad with delusion.
Hope he his paying is training fees on time.
Kia is a very good deal maker. He must have made at least 10% on the Coutinho transfer. He made millions on Tavez. However, I think he has a problem with horse racing. He’s seems incapable of rational thinking and has lost any concept of value. A scatter gun approach splashing out millions seems very irresponsible. He can’t change the reality of the horse racing industry: it’s very much a lottery even buying the best bloodstock. Didn’t Robert Sangster learn that?
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I hope Kia much luck. I hope he does not gamble like a certain Mr Ramsden. At the present moment horseracing needs more competition than the established lot of wealthy and powerful owners more into commercial breeding like Coolmore who's operating a quasi-monopoly.
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