LEXINGTON, Ky. (WKYT) - Ahmed Zayat, the Triple Crown-winning owner of American Pharoah, is said to be close to bankruptcy, according to our media partners at the Lexington Herald-Leader.
Zayat Stables was hit with a $23 million lawsuit early this week from MGG Investments, a New York-based firm.
According to the Lexington Herald-Leader, MGG Investments claims Zayat secured a loan by using his equine assets, on which he defaulted. Zayat told MGG Investments he’s broke. Fayette Co. Judge Kim Bunell granted MGG Investments’ request to have a third-party take over day-to-day management of Zayat Stables.
MGG Investments claims Zayat secretly sold nine lifetime breeding rights to American Pharoah. Zayat is claimed to have pocketed the $3.3 million made on the transactions, instead of putting that money towards paying back his loan.
Zayat is also alleged to have sold his ownership interests in Bodemeister and several other horses.
In 2015, American Pharoah became the 12th Triple Crown winner.