October/November/December $2.50 2011 ARIZONA THOROUGHBRED 2012 STALLION REGISTRY Hidden Springs Ranch FZWefSXXSf:[VVW`Ebd[`YeDS`UZiag^V ^[]Wfai[eZS^^aXagdbSefbdWeW`fS`VXgfgdW U^[W`feShWdk<akXg^:a^[VSkEWSea`i[fZ _S`ki[`e[`fZWUa_[`YkWSd %2$5',1* 75$,1,1* 6$/(635(3 )2$/,1* 6:,00,1* WKHKLGGHQVSULQJVQHW KLGVSUDQFK#DROFRP 2 Arizona Thoroughbred October/November/December October/November/December 2011 s Issue IV © 2011 by The Arizona Thoroughbred Breeders Association Incorporated Stallion Syndications Revisited P.O. Box 41774, Phoenix, Arizona 85080 4 4ELEPHONE s &AX ATBA offices are located at 1501 West Bell Road, Phoenix, Arizona, 85023. The Arizona Thoroughbred is published bi-monthly Stem Cells and Regenerative Medicine 6 (annually publishes a Stallion Registry) in Phoenix, Arizona by the Arizona Thoroughbred Breeders Association, a non-profit corporation, dedicated to the production of better Arizona-Bred Thoroughbred horses for better Arizona Thoroughbred racing. !4"! &ALL 3ALE 3TAKE !IZONA 2IDGE 8 Opinions expressed in signed articles are those of the authors and do not necessarily reflect policies of the ATBA or this magazine. Publication of any material originating herein is expressly forbidden without first obtaining written permission from The Arizona !4"! &ALL 3ALE 3TAKE 0AGE 3PRINGS 9 Thoroughbred. All advertising copy is submitted and subject to approval. We reserve the right to reject any copy that is misleading or that does not meet with the standards set by this publication. ATBA Sale Results 10 - 11 Advertising rates supplied upon request. Track Talk 14 OFFICERS - President: Dennis Grenier Walter R. Cluer Memorial Stake - One Call Vice-President: Peggy Hopwood 16 Treasurer/Secretary: Dorothee Keickhefer Arizona-bred Winners 18 - 19 DIRECTORS - Ronald Allen, Mike Chambers, Ron Chappell, &RANK #OVELLO -ARVIN &LEMING 7ENDE ATBA Sale Winners 20 - 23 Macumber, Kevin Owens, Scott Rollins, Lee Vaughn, Dave Williams, and R. C. “Rink” Williams. Hugh Southern (Honorary) . Arizona Stallion Standings 24 - 25 ATBA ADMINISTRATIVE STAFF - Calendar 26 Executive Director: Yvonne Kunz Arizona-Bred Registry: "ERDETTE &ELIPE Associate Editor: Yvonne Kunz Advertising: A.T.B.A. Office Advertising Index 26 2012 Stallion Registry 27 CONTRIBUTORS - BLOODSTOCK RESEARCH COADY PHOTOGRAPHY JOHN ALAN COHAN THE JOCKEY CLUB On the Cover DR. JAMES MAC LEOD 5.)6%23)49 /& +%.45#+9 SUBSCRIPTIONS - $15.00 annually domestic; $24.00 foreign Coady Photos October/November/December Arizona Thoroughbred 3 Stallion Syndications Revisited By John Alan Cohan, Attorney at Law Stallion Syndicates have been a popular vehicle for and disbursements involved, and other information people engaged in breeding activities for over 40 years. pertinent to the Syndicate, including veterinary This is a mode of co-ownership that applies to all types reports, breeding schedules, the pedigree information of horses in all breeds. of mares nominated to the stallion, and other details. Each co-owner, in turn, must keep separate business During the 1980s, many people syndicated high quality records in accordance with IRS regulations applicable to stallions as investment and tax strategies. These were horse activities. thought to have the advantage of spreading risks of loss and sharing maintenance costs, as well as attracting A good Syndicate Agreement will specify the duties of investors to situations that could generate significant the manager what sort of voting rights are conferred profits for all parties involved. on the co-owners, and what sort of marketing plan or strategy will be implemented to promote the foals of Today the Securities and Exchange Commission the stallion produced under the Syndicate. continues to regard stallion syndications as “non- securities,” which means that the promoter can freely Installment payments are often available, making it advertise and solicit the general public to buy stallion affordable to start up a horse activity. shares as long as the agreement is in correct legal form. Each investor becomes a co-owner of a fractional Mortality insurance on the horse is factored into the interest in the stallion, and is entitled to breeding annual maintenance fee, but if some members don’t rights. Care of the stallion is delegated to a Syndicate pay for their share in full, the promoter may require Manager who has day-today charge of the animal. them to obtain separate mortality insurance on their shares, with the loss payee designated as the Syndicate There are tax benefits for all members of a stallion manager. syndicate. Each investor is entitled to depreciate the cost of the fractional interest, and to deduct The Syndicate is not a separate taxpaying entity, nor is maintenance costs from one’s income tax. In addition, it a partnership entity and each co-owner is responsible investors may decide to lease a broodmare, and those for filing his or her own tax return in which deductions costs are tax deductible. Of course, this is the caveat are made. that the taxpayer has the intention to be engaged in an activity for profit. Stallion syndications today are still a viable means to cut down on costs, and can be a prudent economic The principal business advantage of a Stallion Syndicate alternative to out right ownership of high quality is that each co-owner is assured a long-term breeding stallions. Legal counsel should be consulted to rights to the stallion at a fixed price, usually with a live properly draft Syndicate Agreements and to insure foal guarantee. that applicable tax and securities laws are taken into account. Drafting a Syndicate Agreement is crucial to any V horse syndication because there are important legal considerations, not to mention the importance of John Alan Cohan is an attorney who has served the farming, making the agreement compatible with Federal tax law livestock and horse industries since 1981. He can be reached at: considerations. 310-278-0203 or via e-mail at [email protected]. Website address: www.JohnAlanCohan.com The Syndicate Manager is required to keep accurate books and records of the Syndicate to show all income 4 Arizona Thoroughbred October/November/December Gaston Jewelry Ad_ATBA.qxd 10/28/08 7:24 PM Page 1 WE HAVE A STERLING REPUTATION ® ER723/SS EPD553 Horses & Jockey Charm SLH083 SLD553 EPH177 BV020 BV020-8 NH177 EPH177 NORTHWEST CORNER 35TH AVE & BELL (behind Firestone) Se Habla Espanol! NEED Family Owned Over 30 Years At This Location CASell or SH?Trade your Horseshoes Gold & Diamonds Out west, you’ll see horse shoes tacked on s Appraisals barns. Horseshoes turned Owner Brenda Carol Chappell s Custom Jewelry Design up are known in folklore Member s Jewelry & Watch Repairs Central/Northern to bring good luck. Arizona s Pearl Stringing It’s as if the cup of the s Credit and Layaways Welcome 602-978-2933 horseshoe holds the luck. T Stem Cells and Regenerative Medicine PAY ATTENTION As a veterinarian and cell biologist trained during correct concentrations and with the appropriate mo- the 1980s I have witnessed first hand the transfor- lecular structure to positively modulate the patient’s mative impact that molecular biology has had on immune response and tissue repair capabilities. The biomedical research, agriculture, and medicine. patient’s own cellular resources for repair are mo- Characterizing molecular biology as “transforma- bilized and activated. Destructive catabolic (tissue tive” is appropriate. Consider how recombinant breakdown) processes are switched to a self-sustain- DNA methods, transgenic, and now genomics have ing anabolic (tissue growth) response. Interestingly, impacted discovery science, farming practices, the the introduced stem cells may not need to remain pharmaceutical industry and clinical diagnostics. viable in the lesion area for a long time to affect his The process is not winding down--actually just the switch. opposite. We are entering an era of personalized medicine. Along with medical history a clinical The second category appears to be more challeng- exam, and diagnostic tests, the evaluation and care ing. It involves direct mechanisms in which the of patients will increasingly include consideration of introduced stem cells themselves are expected to dif- an individual’s genome. Factoring in of the genome ferentiate into the correct cell types synthesize and is already the case for known genetic markers with organize the appropriate extracellular matrices, and established disease associations. The full rese- regenerate normal tissue structures to achieve tissue quencing of a patient’s DNA (genome), an overall repair. Both mechanisms work toward a restoration evaluation of gene expression in clinical samples at of tissue structure and function. the RNA or protein levels, and broad screening of metabolites all appear to be coming to clinical prac- The take home message that I now embrace and tice in the not-too-distant future. Veterinarians and will encourage others to consider is “pay attention.” physicians will use this information to help generate Stem cells and regenerative medicine are poised to the differential diagnoses list for a patients, custom- yield major clinical advances. Many basic questions ize therapeutic strategies, and improve prognostic remain unanswered and there is much to learn. Our assessments. discovery process needs to be driven by rigorous scientific methods an hypothesis-driven experimen- In contrast to molecular biology I have more recent- tal biology However, through access to our diverse ly recognized that cell biology also will likely have patient population, veterinary medicine has every a transformative impact on the practice of medicine opportunity to lead development and progress in in a similar, not-too-distant time frame. Data are these important ares. Yes--pay attention. V now accumulating from several medical disciplines that multipotent “stem cells” have the potential to facilitate tissue repair. I am not a stem cell expert Contact: Dr. James MacLeod y any stretch but two broad mechanistic categories (859) 218-1140, [email protected] appear to be emerging. Maxwell H. Gluck Equine Research Center University of Kentucky, Lexington, Kentucky The first category includes indirect mechanisms.