A fun investment

The strong trade seen at this autumn’s yearling sales was totally unexpected, but with such massive upswings on offer down the line for good racehorses and breeding prospects, as well the chance to have some serious fun along the way, perhaps we should not have been surprised

Photo courtesy of Goffs | Sarah Farnsworth

NO ONE SEEMINGLY HAS THE ANSWER.

No, we are not talking British politics but the enduring level of trade through the main yearling sales season from its start in August to its conclusion in Deauville in October.

Equine trade has bucked all the current and wider parameters of life; consignors, breeders, sales men and buyers alike have been looking at each other in amazement this autumn at the level of returns.

The purchasers, who arrived in Newmarket having been on buying missions in the US and in Ireland, landed at the airports gasping for breath after the strength of trade seen at the two sales grounds. There was no let up at Park Paddocks and led agent Alex Elliott to exclaim: “It seems that 50,000gns is the new 10,000gns!”

And, unlike some recent years, it is not one or two excessive prices that have driven up the figures – the high middle market, as seen by the strong medians, has been so solid.

Of course, the currency fluctuations have led US buyers into the market in Europe, but that is only part of the story.

Undoubtedly, at Newmarket, Sheikh Mohammed’s desire to buy the best of the sons of world-leading and veteran sire Dubawi played its part in creating a record-breaking set of October returns, and the trickledown effect, unlike in economics, seemingly worked a treat.

With such a strong Book 1 – Sheikh Mohammed dropping over 25m guineas into the Book 1 market having spent over €5 million in France, and Richard Knight’s mystery man outlaying over £10 million at Tattersalls, €900,000 in Ireland and nearly €2 million at Arqana August – it meant others were forced to buy further down the line.

Jocelyn de Moubray will crunch in the industry numbers in much greater detail in the next issue and will probably discuss the current weight of sire power and influence in Europe.

In Book 2, Joe Foley, stud man, stallion man, bloodstock agent and bloodstock manager, discussed the very topic and he put it all down to “fun”.

Standing by the door of the sale ring having just purchased another yearling for the Clipper Logistics / Bronte Syndicate axis, he said:“It is a great sport, a great business, and people get fun out of investing in racehorses. Maybe after the negative times we have had in the recent past and maybe will have in the future, people are keen to spend some money and have some fun. Investing in the bloodstock industry – it is fun investment!”

He added: “You can love football or cricket all you like, but you can’t invest in them, you can love racing and you can invest in it – you get double the kick, gambling [with an equine investment] but also having the fun!

“I have seen the Bronte Syndicate this year – the fun they have had together going to Royal Ascot with four runners and having the filly placed in the Queen Mary, I saw first-hand the fun they got from the racing.

“It is a fun industry to invest in, you can’t say that about many industries. Investing in stocks and shares, you don’t get to go ‘Yes!’; enjoy a drink and have a bottle of champagne with your mates and say ‘Yes, we just won the Listed race!’”

He continually used the word “investment”rather “ownership” and I think that is key. People like to think that there is some chance these equines will produce an onward monetary return – either on the racecourse or when returned for sale or to the breeding shed, and that there is a financial benefit of involvement, that they are not pushing money into a drain. And they can be very well rewarded, too.

With a well-run syndicate such as the Bronte Syndicate, a good buying team such as Foley and wing man Federico Barberini, and all the complicated decisions that make racehorse “ownership” no fun at all taken care of, the syndicate members while not guaranteed a good horse (we know that can’t ever happen) have the best chance of hitting the jackpot, be it through racecourse performance, enjoyment or financial return, or even all three.

Syndicates are not the be and end all for the racing indsutry and many people continue to enjoy sole interest in a horse, but just maybe the word “ownership” has become too tainted and too negative?

Or is it even relevant? If you fluke a good horse with such huge possible returns available now from various avenues, maybe people now don’t view racehorse involvement as anything other than an investment – and I have a feeling much of the yearling trade this autumn was driven by investment, rather than an altruistic view of racehorse ownership.

Maybe its time to rebrand the whole concept of ownership?

OF COURSE, none of this would happen –none of the trade at the sales, none of the success and fun on the racecourse, nor the possiblity of a profitable investment – would happen without racing’s bank of employees.

On the Friday of Book 1 week the winners of the last-ever round of the Godolphin Stable Staff Awards – the awards having been rebranded as the Thoroughbred Industry Awards – were presented their prizes at Dalham Hall Stud; the recipients missed their awards night in London, announcements of their success given over home Zoom calls.

After a morning of presentations and highly eloquent speeches from all the award winners, they got to see, and have selfies with, the ever-youthful Dubawi, the vibrant Masar and the handsome Cracksman.

Paddy Trainor, 2022’s Employee of the Year, enjoying his moment with star sire Dubawi

A day at the races was then enjoyed… allowing the team to enjoy a rare day at the sports without working (though Paddy Trainor, 2022’s Employee of the Year, was spotted in the parade ring with a stable runner).

The presentations were neatly arranged for the same day as the largely Godolphin-sponsored Newmarket race day, the first day of the Dubai Future Champions Festival and showcasing the charitable work that the organisation is working to achieve in the locality through its Beacon Project.

“Having witnessed the emotion displayed by the winners, just what it means to them to have their efforts recognised in the industry, all trainers and stud managers should be prioritising an effort to fill in the application form

Reflecting on having won the prestigious honour earlier in the year, Trainor said: “I’m still over the moon about it all. This year when I’ve been going racing, or even just walking around Middleham, I’ve had people coming up to me and congratulating me, which is very rewarding, and I was overwhelmed by all of the cards and congratulatory messages I received from people in our industry from around the world.

“I hope my experience can encourage people to join our industry, and for those more experienced to nurture and train their younger colleagues.”

Award winners (left to right): Alyson West (James Ferguson), Tom Messenger (Dan Skelton), Charlie Sipos (Hascombe and Valiant Stud), Dulcie West (North Farm Stud), Paddy Trainor (Johnston Racing), FR33DOM Zampaladus (Urban Equestrian Academy), Tim Hogg (Jedd O’Keeffe), Pam and Kevin Atkinson (New Beginnings), Debbie Brodie (Godolphin), Andrew Braithwaite (British Racing School) and John Nicholson (Johnston Racing)

Nominations for the 2023 awards from trainers and stud farms are now being accepted. Having witnessed the emotion displayed by the winners, just what it means to them to have their efforts recognised in the industry, all trainers and stud managers should be prioritising an effort to fill in the application form to nominate outstanding members of staff.

The forms are easy, but do require thought and more than one-line answers. If you need some help and direction, the organising team will be more than willing to offer some guidance. There is an example of a successful nomination on the website, though it is probably not advisable to copy it verbatim.

With staff shortages, and the difficulty in finding a good capable and experienced employees, these awards not only offer a benchmark that allows others to aspire to, but offers employers an easy way to say “thank you, your work is vital”.

In a recent chat for an upcoming film (out soon!) featuring David “Mouse” Cooper, the artist we had in the spotlight in June’s edition, he mentioned the dififculty he had as a 40-something to remain motivated and enthused working in a racing yard, and how difficult it was for him to how to find a course in life within the sport in middle age. As he said “a lot of lads [and lasses] in their 40s are getting lost.”

That age group is exiting jobs in racing and not just for financial or “work-life balance” reasons – and those are experienced and knowledgable people the sport really needs to keep hold of for the long term.