Fung Severs Ties With Phoenix Thoroughbreds

Aquis Farm split comes in wake of Phoenix's prize money being frozen in Australia.

A partnership between two big-hitting players of Australia's Thoroughbred industry appears to have come to an abrupt end after Aquis Farm principal Tony Fung vowed not to race horses with Phoenix Thoroughbreds.

The revelation comes in the wake of Phoenix's prize money being frozen by Racing NSW and Racing Victoria April 16.

A spokesman for Aquis, quoted by the Australian Financial Review, attacked the conduct of the Amer Abdulaziz-owned Phoenix Thoroughbreds, saying the group had known for "months" about the freezing of their prize money, with Aquis claiming to have discovered the action taken against Phoenix only on Friday, while they accused the group of "failing to be honest and transparent" with their partners.

"That conduct of Phoenix has failed to meet our expectations," a spokesman for Aquis said on Wednesday.

"Any true co-owner should inform their partner of such action by authorities. Phoenix failed to be honest and transparent with us over the prize money freeze, which has rendered the relationship untenable.

"We have sought further clarification from Phoenix multiple times since late last week over matters of their relationship with racing regulatory bodies in Australia, but they completely failed to answer questions. The matter has been placed in the hands of our lawyers."

In partnership, Tony Fung Investments and Phoenix splashed AU$11,645,000 to be the leading buyers at this year's Magic Millions Gold Coast Yearling Sale, including three seven-figure purchases among 19 yearlings acquired in January. 

Fung, the owner of Canungra-based Aquis Farm, purchased under the banner of Tony Fung Investments for the first time in 2021, while his association with Phoenix began in 2018 when Aquis, in partnership with Yulong and Ciaron Maher Bloodstock, as well as Phoenix, purchased a Snitzel  colt for AU$1.6 million at the 2018 Magic Millions Gold Coast Yearling Sale. 

Aquis Farm and Phoenix have together purchased a further nine yearlings, six from the Magic Millions Gold Coast Yearling Sale and three at the Inglis Easter Sale, in 2019 totaling more than AU$6 million, including their most high-profile racing and stallion asset, the 2020 Longines Golden Slipper (G1)-winning colt Farnan for AU$550,000 (US$392,700) from the Magic Millions Sale, while together they race promising stakes winner Holyfield.

Phoenix, who refused to comment after news emerged of the Australian bodies freezing prize money, also races in partnership with Winchell Thoroughbreds in the United States, while holding equity in Australian stallions Exceedance and Farnan, who stand at Vinery Stud and Kia Ora Stud, respectively.

The group moved swiftly to reassure their partners following the termination by Aquis and Fung of their relationship. 

A statement by Phoenix released on Wednesday read: "We want to quickly address the statement made by Aquis Farm concerning ending our partnership. 

"The conditions placed on us by Racing NSW and Racing Victoria only affect our prize money share. Any funds due to our partners and trainers remain unaffected, as does our ability to race. 

"None of this impacts our professional relationship with Aquis or their revenue streams from racing in partnership with us. 

"As we have been seeking to resolve this matter we have remained fully confident in the integrity of our operations and have not considered it appropriate to involve other parties."

Abdulaziz became embroiled in money laundering allegations after he was named in a U.S. court as a key conspirator in the OneCoin scam in November 2019. Abdulaziz denies all allegations made against him.