A multi-million pound worldwide bloodstock venture based at the Curragh in Co Kildare has fallen through, the High Court has been told. Mr Justice Geoghegan was told yesterday a Japanese businessman, Mr Terunobu Nakao, had instructed auctioneers to sell the £1 million Friarstown House Stud at the Curragh where he and the recently formed Omni Racing Club planned to launch a 200-horse bid for racing prizes in Britain, Ireland, France, Japan and the United States.
Yesterday, a horse trainer, Mr Liam Browne, selected by Mr Nakao to head the Irish-based venture, and two others, were granted mareva orders freezing almost £1 million of Mr Nakao's assets in Ireland.
Mr Browne, Mr John Walsh, a Naas-based bloodstock agent, and the Sporting Life racing journalist, Mr Alan Smith, are claiming damages against Mr Nakao and the club for a total of £950,000.
Mr Justice Geoghegan granted mareva injunctions to all three - £600,000 in respect of Mr Browne's claim; £275,000 in respect of Mr Walsh and £75,000 in respect of Mr Smith.
Mr Alan Mahon SC, for all three, said Mr Browne, of Tara Cove, Ballymoney, Gorey, Co Wexford, had trained 52 group and listed winners and had agreed a three-year, £100,000a-year deal, with car and expenses, with Mr Nakao.
Mr Mahon said: "He [Mr Browne] was employed to advise on property purchase, to oversee the running of racing stables and stud farms and to purchase bloodstock in Ireland and abroad for training and racing in Ireland and abroad."
Mr Mahon said Mr Browne's contract included the purchase of bloodstock for stud and breeding purposes; to act as trainer for Mr Nakao's horses in Ireland; to recruit trainers for his stables abroad, particularly in the UK, and to oversee Mr Nakao's racing interests both in Ireland and Britain.
Mr Browne, in an affidavit, said he was to advise on racing properties in and around Newmarket in England.
He bought Friarstown House Stud, Kildare, in August last year for Mr Nakao's company, Omni Rossmore Lodge Co Ltd, trading as Omni Racing Club, and engaged an architect and others to clean and renovate it.
"In November last year I bought Zagreb, the Irish Derby winner, for £2.9 million for Mr Nakao and the company and my commission due was £145,000, which has never been paid," Mr Browne told the court.
To date Mr Nakao had failed to make the necessary funds available to him to buy yearlings and other bloodstock, and since joining the enterprise he had bought only six two-year-olds, he said.
He had been publicly embarrassed by a lack of funds to pay bills and make purchases. His reputation had suffered. Then on July 8th last Mr Nakao faxed him to look for a buyer for Friarstown House Stud, which was for public auction on Wednesday next, September 10th.
Mr Nakao's principal asset was Friarstown House Stud and he (Mr Browne) feared the estimated proceeds of £1 million from the sale would be taken to Japan.
Mr Walsh, of Leinster Aquaduct, Naas, Co Kildare, is claiming damages in respect of losses relating to consultancy services. Mr Smith's claim concerns the provision of bloodstock services.
Mr Justice Geoghegan said the injunctions applied only to the proceeds of the sale of Friarstown House Stud next Wednesday, September 10th, and did not restrain the sale from going ahead.