The gloves are finally off. A two year old festering sore has burst. Summerhill Stud’s feisty owner Mick Goss has broken what his team terms his “dignified silence” to hang out the very dirty washing that caused the end of his farm’s mostly successful two decade relationship with the rulers of Dubai.
Goss today distributed his version of the the events which led to the breakup, pulling absolutely no punches. The subject of his ire is an un-named manager at Shadwell, the breeding and racing operation of Sheikh Hamdan bin Rashid Al Maktoum, Deputy Ruler of Dubai. It doesn’t take much sleuthing to work out that his anger is directed not at Shadwell’s racing manager Angus Gold (who is mentioned in warm terms in the release), but rather the finance director Chris Kennard (who drives the money side). Republished below is Goss’s official release that was distributed today. Below it, for context, is the resignation letter distributed last year by the outgoing KZN Breeders Club Chairman Warwick Render – again, referred to namelessly in the Summerhill dispatch.
This is sure to keep the district talking for weeks. One thing’s for sure, Goss’s nickname – Micky Maktoum – is hardly relevant any longer.
Mick Goss’s Press Release: End of An Era
Last Friday, Shadwell Stud issued a press release regarding the relocation of their South African-based stallions. The negative conjecture flowing from and preceding this release compels Summerhill to respond, and this statement is intended to set out the facts.
Some twenty-two years ago, these two entities commenced a long and mutually beneficial relationship, initiated by the late Sheikh Maktoum’s Gainsborough Stud, and thereafter by Shadwell. The trust and respect which characterised the two decades is illustrated in the recent very substantial investment by Summerhill in the family-named School of Management Excellence, one of the finest facilities of its kind in the world, and which has been a resounding success.
However, personalities sometimes have an unfortunate way of disrupting sound business relationships. In general terms, several major interventions by an official of Shadwell have soured the relationship, making it untenable for Summerhill and its staff to continue. Beyond the broad disclosures mentioned here, Summerhill, out of respect for the relationship, does not believe there is any value in disclosing the detail, unless legal, commercial or moral necessity dictates otherwise.
In July 2009, in the presence of some 700 local and international attendees, a Shadwell official publicly announced a pledge of several million Rand towards the erection of the School of Excellence, in recognition of the contribution Summerhill had made to the success of Gainsborough’s business. As matters turned out, the pledge was not a donation but a loan, offered on terms so onerous that any one of four of the conditions could have materially impacted Summerhill’s finances in the future. Naturally, Summerhill declined to accept, given that much of the money had already been advanced and used in the project. Numerous acts of reprisal ensued, initiated by the same Shadwell official, in an attempt to force Summerhill to accept the conditions.
One of these involved an attempt to discredit Summerhill with the suggestion that it had improperly received proceeds from the local breeders’ premium fund. A decision delivered by a much respected Senior Counsel arbitrator vindicated Summerhill completely, and led to the resignation of the Chairman of the local breed society. In his letter to his constituents announcing his resignation, this gentleman expressed his regret at the harm which Summerhill had suffered, and he confessed to certain errors of judgment, for which he recorded his apologies. He conceded that Summerhill had at all times acted with integrity and within the rules of the fund. Regrettably, there has been no remorse shown on the part of the Shadwell official who contributed to this man’s resignation.
More recently, following another lengthy arbitration process, Summerhill was once again vindicated by a retired judge of the Appeal Court, when Shadwell failed to respect Summerhill’s rights under a stallion standing agreement, co-authored by the same Shadwell official. The judgment was accompanied by a costs award in Summerhill’s favour. Towards the end of November, in the wake of this judgment, Summerhill’s solicitors notified Shadwell of Summerhill’s intention to terminate the relationship, and invited Shadwell to join them in a statement on the matter, and to consider alternatives for the housing of its horses. In view of their age and waning fertility, Summerhill also offered to provide a retirement home for their stallions at the appropriate time. Both these invitations were ignored.
According to Summerhill’s Group Business Manager, Ferdi Heinen, “Through all of this, Summerhill has maintained a silent dignity. At the outset we attempted to save Shadwell the embarrassment of the adverse findings subsequently made against them, by proposing the intervention of a mediator, but that was also ignored. Not many businesses will have asked an entity such as Shadwell to remove their stock. We have enjoyed twenty years of excellent relations with this organisation, characterised by the profitability of their ventures and the professionalism and gentlemanly conduct of people such as Angus Gold. It is with considerable regret that we arrived at this decision. In the end though, the toll on our time and our people, made continuing intolerable. As matters stand, Shadwell has been indebted to Summerhill for more than a year, at times for large sums of money, much of it connected with judgment and the keep and welfare of their stock. Shadwell has made no attempt to settle any of this and were it not for collections made by Summerhill itself, the sum outstanding at present would be enormous. The horses will not be leaving until their dues have been settled.”
* The stallions involved are KZN’s most successful sire for some years, Kahal; the aging but top quality Muhtafal; and Malhub, whose departure would not be regarded as much of a loss as his results have been rather ordinary.
Warwick Render’s Letter of Resignation from August 2011
Dear Member
It is apparent that there have been rumours circulating regarding the issue of stallion premiums and Summerhill Stud. It is imperative that the record be corrected here and hence this letter. A query was raised by a member to The Board of Gold Circle regarding a portion of the stallion premiums paid to Summerhill. In order to maintain the integrity of the premium scheme a full investigation was conducted by the audit committee and Senior Counsel and the results confirmed that Summerhill had not transgressed the rules in any way and had conducted all of their business with the scheme with integrity and that the rules of the scheme had been applied throughout. I sincerely regret any harm which Summerhill may have suffered as a consequence of these rumours”.
During the process of dealing with the query I personally made certain errors of judgement, and for this I place on record my apologies. The only positive to have come out of this is that the board of directors will have learned much about how such an enquiry should have been dealt with, and what steps should be taken in future should the need arise to deal with any queries regarding any of our members on any aspect of the scheme.
In light of the above events I believe it appropriate that I step down from the position of chairman of the board of KZN Breeders with immediate effect. I thank you all for the honour granted me of having served in this position for the past five years.
* Warwick Render is the owner of Bush Hill Stud. The rumour mill suggests Bush Hill will be the new home of the Shadwell owned stallions Kahal, Muhtafal and Malhub.
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