MR POT AND MR KETTLE

Last updated : 04 February 2004 By Editor
By Rachel Pagones in the Financial Times:

‘The cry for greater transparency that has dogged football
of late cross-pollinated to horse racing last week,
threatening big repercussions for the bloodstock world. That
world is the natural realm of John Magnier - who in
conjunction with JP McManus, also a racehorse owner, is the
prime source of the push for greater disclosure in football,
using the muscle that comes with being Manchester United's
biggest shareholders.

‘The story reported by The Daily Telegraph seemed humdrum
enough. It concerned legal proceedings following the botched
sale of a filly for £275,000. The amount in dispute, about
£25,000 worth of damages, was small. Moreover, the trainer
and bloodstock agent involved deny any wrongdoing, and
eventually settled out of court.

‘However, allegations were made of undisclosed commissions.
The judge made critical remarks and this has now led to
calls for the Jockey Club to get involved.

‘From my own experience, I have no compunction in saying
that corruption is endemic in the business

‘I had been waiting years to speak out against the sort of
trainer who corners you as the horse you're selling enters
the auction ring, and says he'll bid on your horse up to an
agreed price, but only if you give him anything over that
price, plus 10 per cent of the total. Or the trainer who
offers you a horse but tells you to add £10,000 for him and
whatever you want for yourself when you price the horse to
your client.

‘Here's another favourite. A client sends his agent to a
sale with a certain amount of money to spend. The agent
finds a horse with a reserve for half that amount. Agent and
vendor then agree to bid the horse up to the buyer's limit
and pocket the difference between them.’