Gordon-Watson:
"I've had some close shaves with bad payers~.maybe I got away with it for too long"
Ris
business
As the victim of a serious fraud, Charlie GordonWatson was left facing huge personal liabilities
and dreading every telephone call he received
Words: Carl Evans
welve months ago Charlie GordonWatson was staring into a financial black
hole. The celebrated bloodstock agent,
who boasts a 'who's who' of clients and
whose big-race buys include Derby winner Kris Kin
and this year's French 2,000 Guineas winner Silver
Frost, had been stitched up by a con man and faced
the very real task of disentangling himself from a
massive financial hit.
At Tattersalls' 2007 December Sale serial
fantasist Michael Baker - now serving a prison
sentence for fraud - instructed Gordon- Watson to
buy four in-foal mares, namely Sweet Stream who
cost 1,100,000 guineas, Silverskaya'750,000gns, a
half share in Leto for 450,000gns, and Mora Bai,
who made 380,000gns.
The sales company paid the vendors, but when
Baker failed to reimburse Tattersalls, it was
Gordon-Watson who was left holding the
headcollars and facing a series of exhausting
challenges to make good the damage,
T
How did it come to that?
In September last year Michael Baker was given a
three-year sentence for fraud involving the
48 THOROUGHBRED OWNER & BREEDER INC PACEMAKER
CHARLIE GORDON-WATSON
SURVIVING A LIVING NIG1-ITLVtARE
;,urchase ofbloodstock through both Gordonwho was going to take three of the mares, but after
Watson and trainer Henry Cecil.
that had dragged on for months it fell through Judge David Griffith- [ones accepted Baker, 28, a that was dreadfuL In the meantime the mares were
bankrupt former pub landlord, suffered from a
foaling, but should we cover them?
?ersonality disorder, but said: "These were
"It was a mess. It was hell, a living nightmare. It
calculated frauds ... involving significant degrees of
takes your eye off the ball and affects your other
subterfuge. "
work. The only consolation was that interest rates
Baker asked for a further three offences were low, which eased my burden."
involving a £13 million lease on a London
Yet Baker's trail of deceit gained a perverse sheen
property, a £49m Cayman Islands-based yacht and
in December last year. Sweet Stream's Monsun filly
six US-based horses worth £13.5m - to be taken
foal, carried when Gordon-Watson bought her for
into consideration.
the fraudster, fetched 440,000gns and topped the
"That he was able to commit fraud involving
December Sale's weanling section. That paid off
many millions, not only in racing but also banks
another chunk of the debt and raises hopes of an
ironic profit one day - after all, Sweet Stream, who
and property companies, shows how plausible and
is only nine, has had a Galileo foal this year, while
clever Baker was," says Gordon-Watson.
"He claimed he was a private equity investor, but
Leto, covered by Dansili, and her weanling by that
his knowledge of racing, pedigrees and people in
stallion are heading for the December Sale.
"If Baker had been genuine he would be in a
the game was phenomenal. I got a number of
emails from him, saying he was coming to the sales very good position now - Sweet Stream's filly
etc, but he always had an excuse and didn't turn
topped the December Foal Sale, and at Deauville in
up. I never met him.
. August the filly carried by Mora Bai sold for
"One evening at the December Sales I spoke to
£200,000," says Gordon-Watson. "None of the
him on the phone and suggested a fillythat was
mares have paid for themselves but they are going
coming into the ring would suit him to stay in
the right way and are young enough to return a
training. He asked: 'Who would you recommend to
profit."
train hert"
At this point, Gordon-Watson suggested a leading
Escape to the country
Newmarket trainer, with whom Baker then talked at
Earlier this year Gordon-Watson left his long-time
length about a series of races that would suit his
London base for a home and office in the grounds
potential purchase. "He was very convincing and
of Lord and Lady Lloyd-Webber's Watership
even when Tattersalls first contacted me with their
Down Stud. It is a place of serene tranquillity in the
concerns I was relaxed, " Gordon-Watson recalls.
countryside near Newbury and has helped its new
tenant rediscover the drive to stimulate business.
That was because he knew Baker was also dealing
with a firm of estate agents over a property and
He says: "Maybe I'm typecast as a yearling buyer,
because he was also in talks with some top US
yet my results with mares are as good if not better.
consignors about buying bloodstock from a
Thanks to mares bought for Watership Down Stud
(including Darara, dam ofDar Re Mi) and
renowned breeder. It was when that deal collapsed
Breeding Capital (such as Manduro's sister
that Gordon-Watson became worried.
"Throughout this saga I was given support by a
Madura, who was bought for 170,000gns and was
sold on for 7l0,000gns) I've had some good
number of key industry players - that sense of
camaraderie was really appreciated," he says. "I will results in recent years - perhaps I've been lucky."
"But if you see a lot of young horses and have
be more rigorous in future, set up an escrow
account with Weatherbys Bank and ask a new client spent many years at the sales, you build a picture of
their conformation faults, traits and advantages,
to deposit money."
. and get an idea about how each horse should look
from different families. If a horse is incorrect in
Lessons learned
some way, but you can remember the mare's best
The experience would have soured even the
progeny were like that, you are at an advantage. "
greatest optimist, yet Gordon-Watson has found
Of course, not all purchases, be they yearlings or
renewed energy for the game and seems happy to
mares, budget friendly or sky-high expensive, are
accept lessons learned from the Baker debacle.
He says: "I'm wary now and more realistic. P,'e
guaranteed to be successful.
Take the yearling filly by Sadler's Wells out of
had some close shaves with bad payers and accepted
Brigid (and therefore a sister to Group 1 winner
them as part of the business, but this one went too
listen and to Sequoyah, the dam of
fur.Maybe I got away with it for too long."
Henrythenavigator) that Gordon- Watson bought
- At the time, Gordon-Watson admits: "Life was
on behalf of Craig Bennett for a world-record
~ awful. I would get up expecting bad news from
~ every direction. Whenever my mobile rang and sard L500,OOOgns at the October Sale in 2007.
The filly, later named Liffey Dancer, never set
~ P Ryan (Paul Ryan, Tattersalls' financial director I
:001 on a racecourse and, while she could recoup
~ dreaded it. One moment I saw light in the tunne
~Turn to page 50
~ the next it was gone. We had someone in Canada
THOROUGHBRED
"Life was awful;
I would get up
expecting bad
news and
dreading my
mobile ringing"
OWNER & BREEDER INC PACEMAKER
49
CHARLlE GORDON-WATSON
~ From page 49
her cost in the breeding sheds and become a
legendary foundation mare for Bennetr's Merry
Fox Stud, she has yet to get off the mark.
Gordon-Watson says: "Craig spent a lot of
money but he's very happy and has never moaned
or complained. He's had some good fortune and
some bad.
"I also bought him Annabelle's Charm (by
Indian Ridge) and Alsace Lorraine (Giant's
Causeway) and they have won three apiece.
Annabelle's Charm is a Listed winner and both
have achieved high Timeform ratings.
"The world-record filly never developed. She was
a fantastic yearling and had everything in the right
place, but didn't grow.
"Craig's taken the long-term view that you
cannot take the blood away. I would rather buy ten
for the same money, but some clients prefer to go
for one outstanding horse. He wanted the blood
for the long term and I could see his point.
"It was huge pressure because you're on a hiding
to nothing. It's great to have the glory of buying
the top lot, but it's soon over. I'd do it again but
it's an interesting experience. You are putting
yourself in a very tight corner.".
Broodmares: an
agent's guide to
buying at auction
Gordon-Watson
admits that he is fortunate
to
buy for some wealthy dients and can therefore
indulge in trying to acquire the best stock, but
there is still plenty to look out for when parting
with your cash at the sales
Conformation
This is crucial.
Thev've
out to have
.
~
good heart room and
be roomy enough to
carry a foal. Short
cannon bones, a good
pastern angle and not
too slack, a good
second thigh - these
are standard
requirements, because
correct mares tend to
produce good foals.
Pedigree
Ideally the first,
second and third dam
are Group 1
performers, but you
definitely want that
level of ability dose
up. It's not a
coincidence. The Prix
Vermeille is
historically a very
good race for
broodmares - Darara
won it, as did Sweet
Stream, whose looks
and racecourse
achievements
overcame her
pedigree. "
Size
I prefer smaller mares;
from experience they
seem to produce
better foals. Darara
(the dam of Dar Re
Mi) looked like a
Dartmoor pony when
we bought her. I'm
not a fan of big, long
rangy mares - the
bigger a horse the
more there is to go
wrong.
Soundness
This and race record
tend to go hand in
hand.
Broodmare
sire
This is also very
important, as has been
shown time and again
by sires such as
THOROUGHBRED OWNER & BREEDER INC PACEMAKER 50
Oar Re Mi (pink silks): her dam. Darara, was bought by Charlie Gordon-Watson
Habitat, Shirley
Heights, Sadler's Wells
and Darshaan. There
are plenty more.
Age
There is a cut-off
point - if you haven't
sold them by the time
they are 13 you have
them for life. It
depends on what they
have produced. When
a mare looks old their
health becomes a
concern.
Cover
A mare has only to be
in foal to that horse
once, so if you like the
mare enough but she
has a poor cover it
wouldn't put me off.
Often it makes them
better value.
I'm a great believer
that the female genes
are 70% of the foal. If
you look at the Aga
Khan's stud book and
see good horses by
Desert Style and
Zarnindar - who are
not top-draw stallions
- it shows how
important the female
genes are.
People with really
good mares tend to
over-cover them and
you have to admire
Ballymacoll Stud,
which has produced
wonderful horses
without going crazy
on the stallion.
Maiden mares
You have to wait
longer to get a return
on your investment,
but if a young mare
has all the other
attributes I would
certainly not be put off
buying her.