LAND OF THE RICH AND FAMOUS

Hip 87 A.P Indy - Malka $1,400,000
(Photo and Footage : Keeneland)

KEENELAND SEPTEMBER YEARLING SALE
11 - 24 September 2011

The Americans have been called lots of things, including “the free and the brave”, but the results of this weekend’s start to the Keeneland September sales (showcase of American breeding,) and the just-completed Fasig Tipton Saratoga sale, tell us that Americans (or at least some of them) have put aside their economic woes for the time being, in favour of a splurge on the ponies.

Saratoga showed some encouraging signs, but Keeneland (there are still more than 10 days to go) was roaring. Given that this year’s figures were competing with a $4.2million A.P. Indy colt on the first day last year, an average of 8.6% up (with a highest price of $1.4million) was encouragement enough, but it was in the median of $350,000 (the mid-price of the day) that there was cause for jubilation. This was a hefty 40% up, and it tells you how strong the market was at all levels. Investors know that racehorses are an international currency, you can take them anywhere if they’re good enough, and if they’re really good, the big prize is anybody’s guess.

Of course, there is a gamble involved, but it seems it’s one the rich are prepared to take. These numbers are a long way off the heady days of a few years ago, but they at least encourage the view that the market has bottomed and that breeders can continue, with a modicum of confidence, to breed these noble creatures, knowing that there is a point of appreciation in the hearts of Americans, beneath which values are not going to descend.

Perhaps of greater significance to Americans, was the fact that, by and large, the bulk of the big spenders were domestically based. Apart from the odd horse purchased by Shadwell, there was little evidence of participation from the Middle East, though their principal adversaries of the past decade, Coolmore, were back in the fray. Noticeably, the Irish purchases included the progeny of Maktoum stallions, an acknowledgement that for them at least, who owns the sire is not the determining factor: it’s a matter of who the best sires are, and for the past two years, Coolmore’s dabbles in the Maktoum gene pool suggests their interest lies mainly in their wish to maintain their position as the dominant force in world racing through the acquisition of the best horses, wherever they may be found.

Since the local environment is not, by any means, in the sort of trouble the American economy finds itself, there has to be some hope for our market as well. South African horses are more talented now than at any time in our history. Breeders have invested more heavily in their product than any of their predecessors did, and our horses have repaid the faith owners have bestowed upon them, by delivering the goods at the highest level wherever the best races are found.

GONE MISSING : SHEIKH MOHAMMED

Sheikh Mohammed
(Photo : Daily Mail / Keeneland)

KEENELAND SEPTEMBER YEARLING SALE

According to the Thoroughbred Daily News, it was another strong night of selling at Keeneland September, the world’s biggest racehorse auction. But, for the first time in well over a decade, very little of the good news was attributable to the participation of Sheikh Mohammed and his bloodstock agent John Ferguson. Over the years, Sheikh Mohammed has spent hundreds of millions of dollars at September, and the sight of his 747 jumbo jet sitting on the tarmac at Blue Grass Airport was reassuring to many sellers. And it’s easy to see why.

From 1999 through 2009, Ferguson led all buyers in spending 10 out of the 11 years. (Coolmore’s Demi O’Byrne was the lone exception, in 2007.) Ferguson has signed for September toppers four times, including the $9.7 million Jalil (Storm Cat) and the $11.7 million Meydan City (Kingmambo).

His expenditures reached a staggering $59 million plus in 2006 - the year he acquired Meydan City - when he bought 34 horses. And while Sheikh Mohammed’s participation dropped dramatically over the past three years, he still was a major force. Last year, Ferguson purchased 34 yearlings at September, paying $13,980,000 for them. Other operations with ties to Sheikh Mohammed, such as Rabbah Bloodstock, also contributed to the outlay.

But Ferguson’s name has been hard to find on the 2010 results sheets. Through Book 1, he’s bought just two horses, a Bernardini - Victory Ride colt Monday for $450,000; and a Street Cry - Hidden Cat colt yesterday for $200,000. And Sheikh Mohammed, who hasn’t missed a September sale in at least nine years, has yet to make a public appearance.

Opinions as to why Sheikh Mohammed has scaled back his spending are varied. Some believe the ongoing economic woes of Dubai, the United Arab Emirates of which Sheikh Mohammed is ruler, have played a part.

Keeneland’s Director of Sales Geoffrey Russell, however, points to the worldwide expansion of Sheikh Mohammed’s breeding interests as a major factor.

“John spoke earlier this year and said that Sheikh Mohammed’s Darley would not be as dependent on the yearling market as it has been in the past, with the purchase of Stonerside in this country and Widden Stud in Australia,” said Russell. “So it (the cutback in spending) wasn’t a huge surprise to me, and I don’t think it was a huge surprise to consignors.”

Russell thinks there are even positives to the situation.

“I think that, without the strong participation of Darley, it has opened up opportunities for other buyers who in the past haven’t been successful and have been frustrated,” he said. “Now they are able to buy these horses at a level they are comfortable with. I think that’s better for the whole market - more buyers spread over more horses - and there’s more competition.”

Meanwhile, Sheikh Mohammed’s brother, Shadwell owner Sheikh Hamdan, has continued to be a player at September. Shadwell currently is the second-leading buyer at September after two nights, with six purchases totaling $2,885,000. Last year, Shadwell purchased two yearlings for $1,230,000.

A.P. INDY : THE LEGACY

$4.2 Million Hip 14 A.P. Indy - Balance
(Image and Footage : Keeneland)

KEENELAND SEPTEMBER YEARLING SALE

The pervasive influence of A.P. Indy was in evidence at the biggest racehorse sale in the world, Keeneland September. According to Bill Oppenheim’s Apex ratings, A.P. Indy isn’t only the Emperor of American stallions, he is the highest ranked stallion on earth, and the extent to which the top priced colt in the sale exceeded the money paid for the second horse through the ring, exemplifies it.

Admittedly, the colt’s dam was a champion herself, but there are many of these represented in the most prestigious catalogue in the world. It is the towering presence of A.P. Indy that compels the inspection, and after that, it’s a matter of what the richest will pay to beat the richest.

There was a lot of concern and indeed, pessimism about the state of the international market, some of it justified. The biggest concern must’ve centred on the relative silence of the guns of the world’s two biggest sales protagonists, the Maktoum Family of Dubai and Team Coolmore of Ireland, at recent international sales, and particularly Deauville last month. It was encouraging then, to see the under bidder on the $4,2 million son of A.P. Indy, was none less than Coolmore, obviously in an attempt to provide some diversity to the very concentrated strains of Sadler’s Wells and Danehill which have served them so well at their Irish base, and to bolster the ranks of their American operation, Ashford.

It was also encouraging, to see long-time Summerhill patron, Sheikh Hamdan al Maktoum as active as his Shadwell Estate Company has been, and to see Sheikh Mohammed’s man, John Ferguson, notching up a couple in the top twenty. Beyond that though, we need to remember that Ben Leon, a new player in these echelons, who made a final bid for this colt, and that just a fortnight ago, Middle Eastern interests paid a reported €11.5 million for the hero of the English 2000 Guineas and the Prix Jacques le Marois, Makfi, by the new sire sensation, Dubawi. Fresh blood is the staff of life, and heavens knows, every industry needs it.

Keeneland’s opening two days were quite remarkable, some 20% up on last year. Here are some salient features of the Sunday and Monday sessions.

KEENELAND SEPTEMBER YEARLINGS
BOOK1 12-13 SEPTEMBER 2010 

Totals	Book 1 Totals
Catagued	211
Number Offered	185
Number Sold	127
RNA’s	58
% RNA	31.3%
Number $500k+	18
High Price	$4,200,000
Gross	$44,305,000
Average (% change)	$348,858
Median (% change)	$285,000

SHOCK AND AWE AS SALE DEFIES ECONOMIC GLOOM

(Tattersalls/Schrader)

An extraordinary yearling sale that defied the current economic gloom, let alone expectations, was completed at Tattersalls’ Newmarket (England) headquarters last night.

The European Bloodstock News reports that apparently immune from a banking industry’s folly that has led to meltdown and bankruptcy in some sectors and seen world leaders scrambling for solutions, the October Sale Book One sailed ahead as if beautiful horses with strong pedigrees are a commodity that cannot be resisted.

Incredibly, the overall sales figures matched those of twelve months ago, a scenario dismissed as highly improbable on the eve of the event. We now look foolish for being so pessimistic, because the median price set a new record at 85,000gns, up 6% on last year, while the average dipped just 5% to 121,515gns.

No one doubts the significance of Maktoum and Coolmore roles in this hedonistic state of affairs. The Dubai-based family’s role has been of special significance this week, a fact that was not lost on grateful breeders and consignors.

Peter Stanley, of New England Stud, made a pertinent point when saying: “Sheikh Mohammed, the Maktoum family and supporters, have achieved in our market what the American and British governments have been trying and failing to do in the financial world.”

Darley’s John Ferguson (51 horses for 9,342,000gns) and Shadwell Estates’ Angus Gold (23 horses for 4,440,00gns) contributed 13,782,000gns to overall turnover of 49,821,000gns. That is 28% of the trade without taking into account Rabbah Bloodstock’s 32 horses for 1,763,000gns.

Demi O’Byrne and John Magnier of Coolmore Stud bought 17 horses in total for 4,480,000gns.

Edmond Mahony, chairman of Tattersalls, echoed the surprise of industry players when he said: “To say Book One of the October Yearling Sale has exceeded our expectations would be something of an understatement. With turmoil in the financial markets throughout the world we, along with pretty well everyone else, approached this week with a certain amount of trepidation and to record an average and median all but matching last year’s figures is a great result for all concerned.”

TAMAYUZ : An Impressive Performance

Tamayuz
(Shadwell Stud)

What looked like the most impressive three year old miler performance this year (yes including HENRYTHENAVIGATOR), Sheikh Hamdan’s TAMAYUZ cruised away with Sunday’s Prix du Haras de Fresnay-le-Buffard-Jacques le Marois Group One, beating Europe’s best milers including the Champion three year old filly-elect, NATAGORA.

TAMAYUZ is a son of Shadwell’s hot young stallion NAYEF, and comes from the female line responsible for the likes of GALILEO and KINGS BEST etc. If ever Sheikh Hamdan had a stallion prospect, it must rest here with five wins from six starts (including two Group Ones) and is about as handsome as handsome gets.

Whether Coolmore will risk HENRYTHENAVIGATOR against him in either the Prix de Moulin or the Queen Elizabeth II Stakes, remains to be seen. But for those of us with a love of the game, we can only savour the prospect, if and when it comes off.