Cosato, Slam Dunk Racing eye first Grade 1 win in Del Mar Oaks

DEL MAR, Calif. – Earlier this decade, Nick Cosato tried to leave racing. He had worked as an agent for several prominent riders in Southern California, but was ready for a different career.

A year later, Cosato had another change of heart. He returned to racing, this time as the founder of the Slam Dunk Racing partnership.

“I couldn’t get this out of my blood,” Cosato said last weekend. “Racing is my passion.”

The Slam Dunk Racing partnership is in its best year and could have its first Grade 1 win Saturday when Beau Recall and Madam Dancealot start in the $300,000 Del Mar Oaks for 3-year-old fillies at 1 1/8 miles on turf.

Already, Madam Dancealot has provided a milestone for the ownership group with her 21-1 upset in the Grade 2 San Clemente Handicap at a mile on turf July 23. It was her first stakes win in the United States. Her odds were so high that Cosato said he was briefly offended.

“When we were in the paddock, I thought she was too big of a price on the board,” Cosato said. “She was 24-1. I thought she was being disrespected.”

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Madame Dancealot closed from last of eight to win by 1 3/4 lengths.

“I didn’t think she’d run like that,” Cosato said.

Madam Dancealot was purchased for approximately $291,000 at a sale in Ireland last September, then was 13th in the Breeders’ Cup Juvenile Fillies turf in her American debut at Santa Anita last November. She represents one of the more expensive acquisitions for Slam Dunk.

Beau Recall, an import from Ireland last winter, has been second in three stakes, including the Grade 2 Honeymoon Stakes at Santa Anita in June. More recently, Beau Recall was sixth in the Grade 1 Belmont Oaks on July 8.

Slam Dunk owns 75 percent of Beau Recall and recently sold a 25 percent share to Medallion Racing, the racing partnership division of Taylor Made Farm.

“They hopped on board to afford us to take some money off the table,” Cosato said.

Slam Dunk has approximately 15 horses in training, spread across several stables. Richard Baltas trains Madam Dancealot, while Simon Callaghan has Beau Recall.

Slam Dunk is one of several limited partnerships operating in California that have become popular as a way for new and established owners to invest in runners without the burden of holding all the financial obligations.

Cosato, who worked in health care and nursing home businesses while away from racing, found investors he has known for years, and others who are more recent acquaintances. Russ Axelrod, Sean Gerson, Dave Kenney, Mike Jarvis, Gary Margolis, and Mick Cronin, the men’s basketball coach at the University of Cincinnati, are the principal members of the partnership, he said.

Cosato said the partners are in for equal shares, and not in a situation, for example, where one person owns 25 percent and the next has only 5 percent. All investors have a share of each runner, he said.

“When I first started I thought it would be four or five guys with five or six horses, a fun thing for a small group,” he said. “We have five to seven partners on horses. Now, I just raise money, and say, ‘You guys are in for the same percentage.’

“You don’t miss out on a horse.”

Cosato said he also holds an investment in the runners.

“I’ve got a lot of skin in the game,” he said.

The stable may grow for the 2018 racing season. Cosato said he hopes to raise $2 million to $3 million for purchases – up from $1 million for this season – and could add a few new partners. Planning for 2018 is under way with the start of the yearling sale season.

As an agent, Cosato, 50, represented numerous riders such as Victor Espinoza, Garrett Gomez, Corey Nakatani, and Patrick Valenzuela. There are similarities and differences between the jobs of being an agent and operating a small stable, he said.

“Winning races was a big thrill,” he said. “There are things I miss about it. I don’t miss all the nonsense in the game.

“Winning races as an owner and getting down to the winner’s circle there is pretty gratifying.”