Casey’s Racing Blog

In recent months, the United States has experienced economic troubles. There have been significant downturns with foreclosures, banks experiencing bankruptcy, and the stock markets taking a turn for the worse. These problems have affected almost all stratospheres of American society; from the low income family to the wealthy business executive. Since there is generally less disposable income floating around, the Thoroughbred industry has also been affected. Horse racing is sometimes called “the sport of kings”; requiring huge amounts of initial investment, no matter what level of racing one might be involved in. Trainers have fees, Thoroughbreds have needs, vets have never been cheap, and race entries can cost an arm and a leg! There is no end to how much you could spend on any given horse. The most noticeable result of the economic downturn has been its’ effect on Thoroughbred sales.

Thoroughbred auctions are the main market for commercial breeding farms. These farms breed to sell and breed according to market preference and buyer demand. Bloodlines, conformation, and movement are the most important considerations for buyers. Stallions and certain crosses go through phases of popularity based on horses currently racing and past results, but there are always the horses at sales with mediocre bloodlines but that sell for a good chunk of money due to their physical attributes. There are different sales all across the United States and Canada; some for younger horses such as weanlings or yearlings, mixed sales for horses of all ages, or older horse sales. The recently passed Keeneland September yearling sale saw a marked decline in prices. The sale has yet to finish but the numbers are definitely lower: after the first 10 days, a 13.9% decline in totals was seen from the previous year. The average has dropped from $141,958 to $125,636, an 11.5% tumble. (www.theBloodHorse.com) The worst has yet to be seen some fear, since the “select sessions” featuring the highest caliber horses are over and the remaining horses are from the lower end of the scale. The buyers feeling the pinch the most are those who traditionally would buy several mid to lower range horses, not those looking to spend millions. The right horse will still fetch a decent price though, with this years’ sale topper, Hip 147- a filly by AP Indy, selling for a lovely $3.1 million.

The true effects of the US economic downturn on the Thoroughbred industry have yet to be fully realized. The following months will soon tell how much horse racing will suffer from the lack of capital coming from the US. Fortunately, horse racing has gained many Middle Eastern fans, especially from Dubai and Saudi Arabia, so until the price of oil starts to drop, we should not be worried about an all out Thoroughbred market collapse.

Keeneland September's $3.1 million sale topper by AP Indy