Non-Payment Issue Forces Keeneland to Resell Six Horses

Six horses bought at last year's Keeneland September Yearling Sale for nearly $5 million by agent Richard Knight for Kuwaiti businessman Saleh Al Homaizi are being resold as 2-year-olds because of non-payment, according to Keeneland.

"We have (given) everyone involved the opportunity to have this settled, but timelines have come and gone and now we have to move forward," said Tony Lacy, Keeneland's vice president of sales. "It is important with the significant investment in these horses that they are managed appropriately and get to a trainer. The breeders are good clients as well so we need to be sure the pedigrees have every opportunity to improve."

Keeneland announced Feb. 10 it will accept offers on the six 2-year-olds—four colts and two fillies—beginning at 9 a.m. ET, Monday, Feb. 27 through noon on Wednesday, March 1. Details on horses and the offer process are available here.

These horses are not being offered in the digital sale format previously used by Keeneland, but instead will accept the best offers from prospective buyers after they've done their due diligence.

"We wanted to have a more controlled environment; this is not a fire sale," said Lacy. "We'll see what is submitted and what offers are acceptable. If there are offers that are not reasonable, then we have the April sale as an option."

The Keeneland April Selected Horses of Racing Age Sale will be held April 30.

All six horses are currently in training in Ocala, Fla., area with David Scanlon and Niall Brennan and are available for in-person inspection by appointment. Contact information for Scanlon and Brennan is listed is available on the website.

The horses at Scanlon Training Center:

• Colt by Constitution   out of grade 3 winner Cozze Up Lady , by Cozzene. Half brother to grade 1 winner Kimari .  
• Colt by Omaha Beach   out of grade 3 winner Daisy , by Blame  . From the family of multiple graded stakes winners Smart Bid , Ratings, and Fugitive Angel .
• Colt by Street Sense   out of Bambalina, by Bernardini. Second dam is champion Perfect Sting.

Horses with Niall Brennan Stables:

• Colt by Twirling Candy   who is a half brother to Canadian champion Say the Word  and grade 2 winner Rideforthecause . Out of Danceforthecause, by Giant's Causeway, and from the family of Hall of Famer Dance Smartly, Canadian champion Dancethruthedawn, and leading sire Smart Strike.
• Filly by Justify   out of graded stakes-placed Fully Living , by Unbridled's Song. Half sister to Untreated  and Ballet Dancing , both graded stakes-placed in 2022, and from the family of champion Halfbridled.
• Filly by Gun Runner   who is a half sister to 2022 Lexus Raven Run Stakes (G2) and Prioress Stakes (G2) winner Wicked Halo . Out of grade 2 winner Just Wicked , by Tapit  .

"Given the quality of these individuals and the interest they have attracted both in September and now, we feel an invitation to make an offer is the best way at this time to ensure a fair and transparent process for prospective buyers," Keeneland president and CEO Shannon Arvin said.

Current pedigree pages, walking and training videos and pre-sale veterinary X-rays and endoscopic video submitted to Keeneland's online repository are available at Keeneland.com/reoffer. Veterinary exams were conducted on each horse as of Feb. 2. A second veterinary exam will be done within 10 days of sale, and those results will be available in the online repository. Information on the 2-year-olds will be updated on Keeneland.com/reoffer through noon on March 1.

Anyone submitting an offer are encouraged to inspect fully any horse they may seek to purchase. Horses will be sold on an "as-is" basis, subject to the terms of the bill of sale available at Keeneland.com/reoffer.

"These horses are actively in training with David and Niall and should fit well into anyone's program, particularly end-users who are looking at summer and fall racing opportunities," said Lacy. "Prospective buyers in the Ocala area are welcome to inspect the horses in person."

Keeneland is not the only auction house having to wrestle with non-payment from Al Homaizi, 61, who is deputy chairman of the Kout Food Group, a Kuwait-based conglomerate that operates fast food franchises, including Burger King, Pizza Hut, and Taco Bell.

Racing Post reported that Tattersalls contacted by email Jan. 6 buyers at its prestigious Book 1 October yearling sale to inform them that 17 horses would be offered for resale due to non-payment through a private sale or at another public sale to be announced. These horse also were bought by Knight on behalf of Al Homaizi, who had purchased 16 horses at the Tattersalls Book 1 sale for 10.455 million guineas ($10.98m), headlined by a 2 million guineas ($2,379,118) Frankel  colt out of Bold Lass  and a 1.8 million guineas ($2,164,683) Lope De Vega  filly who is a half sister to Battaash  and The Antarctic .

Racing Post also reported that Al Homaizi's buys included a €2.6m ($2.4 million) No Nay Never  full sister to Middle Park Stakes (G1) and Prix Morny (G1) winner Blackbeard  at the Goffs Orby sale in September, which at the time was the highest price paid for a yearling anywhere in the world in 2022. Payments have also not been remitted for these horses.

Racing Post: Owner's £20.5M of Stock to be Resold Due to Non-Payment

"We don't deal with situations at this level very often," Lacy said. "It is unfortunate for the buyer as well. He has been communicating with us openly but faces some difficult circumstances and timelines have passed. This is an incredible group of horses and the trainers are very happy with how they are coming along. They need to be able to move forward."

The non-payments will not affect Knight's ability to buy at future Keeneland sales because he had submitted an authorized agent form that directs the 2022 yearling purchases to Al Homaizi's account and not Knight's personal account, according to Lacy. Had Knight not submitted this form, then he would have been liable for the purchases.