Gerry Harvey puts Nathan Tinkler’s racing empire up for sale

FALLEN billionaire Nathan Tinkler, famous for living the high life, hit an all-time low on Thursday.

Owed millions, retail magnate Gerry Harvey called in his debt announcing he’ll carve up and sell off Mr Tinkler’s once sprawling thoroughbred racing empire, Patinack Farm, at an unreserved auction next month.

All horses will be sold at Harvey’s Magic Millions on the Gold Coast in the last week of September, while agents will be appointed to sell property in NSW, Queensland and Victoria.

Billionaire Mr Harvey, who holds a caveat over all Patinack horseracing and breeding assets, visited Mr Tinkler’s Sandy Hollow headquarters on Monday to inspect the farm and its horses.

He revealed on Thursday that the end of Patinack Farm came by mutual agreement.

‘‘This has been going on for the best part of two years and in the end he [Mr Tinkler] just had to get out of the horse business,’’ Mr Harvey said. ‘‘We met and agreed all the horses and property had to be sold and had to be sold at an unreserved sale.’’

But far from being frustrated or furious that it had come to this, Mr Harvey instead paid tribute to the fallen billionaire.

‘‘Nathan Tinkler should be applauded for what he has put into all sport – soccer, rugby league and racing – it is millions and millions of dollars but in the process he has somehow become hated and despised by doing it, if that is the right words,’’ he said.

‘‘There has been no government stimulation package that has put in the money Nathan Tinkler put into racing –  it would be in the hundreds of millions – but at the end of the day he has damaged his reputation by doing it.’’

Patinack staff said they were told this week that ‘‘it’s all over’’ and they should look for other jobs.

‘‘We were told that the time has come and that Gerry Harvey will be selling us up because he can’t hold on any longer,’’ a staff member said. ‘‘There’s no doubt we all knew it was coming for a long time but it’s still a shock to be facing unemployment.’’

Patinack used to employ up to 200 staff but it’s understood that figure has dropped to around 50 between its Upper Hunter and Queensland operations.

Mr Tinkler burst on to the bloodstock scene when he went on an unprecedented buying spree in 2008 as he set up what would become Patinack Farm. 

Mr Harvey said none of the bloodstock would be sold before the dispersal sale and there would not be a repeat of the Patinack dispersal sale in June last year where Mr Tinkler was buying back several of the horses on offer.

‘‘We cannot afford for this not to look like a genuine sale. There will no reserves and everything will be sold,’’ Mr Harvey said. ‘‘There will be people coming from around the world because there are lot of very nice horses and like most horse sales around the world I will be there trying to buy a horse or two.

‘‘If it doesn’t bring the money he owes then we will have to come to some arrangement but if it exceeds the debt then that money will go to Nathan.’’

The entire portfolio of Patinack Farm stallions, brood mares, foals, yearlings and racehorses – 560 horses – will go under the hammer.

Also up for grabs will be properties at Sandy Hollow, in the Upper Hunter, a training track at Broke, near Cessnock, land outside Melbourne and Patinack’s breeding and training facilities at Beaudesert in south-east Queensland.

Mr Tinkler did not respond to a request for comment on Thursday.

Magic Millions managing director Vin Cox said the sale was the largest unreserved, private thoroughbred dispersal sale in Australian history.

‘‘It represents an unparalleled opportunity to buy some of Australia’s most valuable breeding and racing thoroughbreds,’’ he said. ‘‘Everything will be sold.’’

Mr Harvey confirmed in June that he was owed millions by troubled former billionaire Mr Tinkler, with some estimating the debt could be as high as $40million.

Mr Tinkler invested more than $300million and six years building Patinack Farm in his quest to become the most powerful man in racing.

After spending big on untried horses and stud farms he said he would equal the achievements of Bob and Jack Ingham – whose colours were carried to victory in nearly every prestigious Australian race – within three years.

Despite building an unparalleled reputation as the man who could pull off the most unlikely of business deals, his racing dreams went unrealised.

Patinack had limited success on the track and became known in the racing industry as Pat’n’sack due to its revolving door of employees.

In May, it was announced Patinack Farm would be sold to Dubai-based firm, Cibola Capital, and sources close to Mr Tinkler suggested he’d receive more than $130million from the deal.

But alarm bells started ringing when the actual existence of Cibola Capital was questioned.

At the same time, Mr Tinkler announced he was set to make a dramatic return to the mining sector and purchase a mothballed Queensland mine for $150million.

It emerged last month that he’d failed to make a payment for the deal and another resource company confirmed it had been in discussions with owner Peabody about acquiring the mine.

John Thompson, who was Mr Tinkler’s private trainer with hundreds of horses under his care when the Patinack empire was at its peak, said yesterday the remaining 16 horses still with him would be sold.

Notable horses still raced by Mr Tinkler include Australian Derby placegetter Hooked, promising stayer Tremec and listed Gai Waterhouse Classic winner Peron.

It is understood that Mr Thompson will continue to train the horses until the sale. 

The employment arm of the business, Patinack Farm Administration, was placed in liquidation in late 2012 owing more than $5million to creditors.

A hearing will be held in the South Australian Supreme Court in October where former director Troy Palmer and chief financial officer Tony Marshall will be grilled about the alleged outstanding money.

Mr Tinkler, once worth $1.3billion, lost control of the Newcastle Knights in June but still owns the Newcastle Jets.

Media reports last week said Mr Tinkler, who is expected to appear at the Independent Commission Against Corruption next week, had returned to Singapore to visit one of his employees who recently had a baby.

Mr Tinkler’s estranged wife Rebecca and the couple’s four children live in Maui.