NEWS
Kentucky November breeding stock sales: No fear of the rising tide
Posted: Saturday, November 18, 2000
Keeneland buyers show no signs of nervousness, pushing average 21.5% higher
If participants in the Thoroughbred industry felt any uneasiness over who the President-elect of the United States would be on November 8 (or November 9 or 10 or whenever), it did not show on November 6, the day before the election.
Despite the political upheaval looming on election day, buyers spent as though there would be no tomorrow, breaking just about every single-day mixed-sale auction record worth breaking.
When the auctioneer's last rapid-fire syllables had faded, the industry was left with some astonishing numbers-even at the end of a pretty astonishing year for the bloodstock markets. Record figures for that November 6 session and for the first three selected days of the 14-day sale included:
- $102,450,000 total receipts for the November 6 session;
- 24 horses sold on November 6 for $1-million or more;
- 39 horses sold for $1-million or more during the select sessions;
- $453,318 average for the November 6 session; and
- $311,924 average for the first three days, up 21.5% over 1999.
Nervous? Who's nervous?
One reason for the apparent lack of concern about any long-term effects the election might have on the U.S. economy-the engine behind the steady eight-year run-up in bloodstock prices-was that much of the money spent came from buyers more attuned to overseas economies. Eighteen of the record 39 horses sold for $1-million or more, 13 of the top 20 highest-priced horses, and nine of the top ten seven-figure horses were purchased by foreign-based buyers, although most of them race or breed extensively in the United States.
That domination by foreign-based buyers included the top-priced mare, Jewel Princess, consigned by Lane's End as agent for Ahmed bin Salman's The Thoroughbred Corp. and purchased for $4.9-million by John Magnier, master of Irish-based Coolmore Stud. Champion older mare of 1996 and winner of the 1996 Breeders' Cup Distaff (G1), the eight-year-old Key to the Mint mare is in foal to 1999 leading sire Storm Cat.
Keeneland November highlights
- Single-day record receipts of $102,450,000
- Record 39 horses sold for $1-million or more
- Jewel Princess top price at $4.9-million
- Foreign buyers dominate top echelon
Magnier had been outbid a few hours earlier on what turned out to be the sale's second-priciest offering and made only one bid, the winning one, on Jewel Princess.
"Like I said earlier (after losing out on the previous mare), there's always another bus coming along in a few minutes," Magnier said.
"This mare is the real deal. She goes back to Queen Empress and her family, though it's not on the (catalog) page."
Jewel Princess, who earned $1,904,060 on the racetrack, can indeed claim 1964 champion two-year-old filly Queen Empress as her fourth dam, but it was her sterling race record, beautiful conformation, and foal production that inspired the high price.
"She has a beautiful foal (by Storm Cat) at the farm, and all of the major buyers went out to see her," said Will Farish, owner of Lane's End.
Magnier bought only one other mare for his partnership with Michael Tabor, spending $4-million for Blissful, a full sister to Fusaichi Pegasus in foal to Deputy Minister. Denali Stud as agent for Robert and Beverly Lewis consigned Blissful.
"That was a surprise," Magnier quipped after paying perhaps $60-million less than the valuation of the world's most expensive Thoroughbred. (Coolmore's Ashford Stud put together the deal for Fusaichi Pegasus for a valuation reported to be between $60-million and $70-million.)
Blissful, who was unplaced in three starts, was purchased for $1-million as a weanling at the 1996 Keeneland November sale by agent John Moynihan on behalf of the Lewises.
Catching
The mare who represented to American eyes perhaps the clearest case of auction fever was Catchascatchcan (GB), who sold for the second-highest price of $4.7-million. Irish agent Eddie O'Learey bought her for Dr. Tony Ryan's Lyons Demesne in County Kildare, Ireland. Although Catchascatchcan was a high-class racemare, winning the 1998 Aston Upthorpe Yorkshire Oaks (Eng-G1), and in foal to Danzig, the general reaction to the price was perhaps best summed up by consignor Seth Hancock of Claiborne Farm.
"I'm as shocked as anyone," Hancock said. "They told me she was a great racemare, but I don't know English form that well, I guess. We expected $1.5-million to $2-million, but we never thought she'd do what she did."
Ryan, who owns the Irish-based Ryanair airline, and O'Learey declined to comment beyond saying that the mare would be sent to Ireland.
Most active European-based buyer was English agent John Ferguson, who represents Sheikh Mohammed bin Rashid al Maktoum and Godolphin Racing. Ferguson signed for six horses during the select sessions, including three broodmares, in foal to Storm Cat, Coronado's Quest, and A.P. Indy, for $3-million or more.
Highest-priced of the trio was another top racemare, Squeak (GB), a six-year-old daughter of Selkirk who won the 1998 Matriarch Stakes (G1) and Beverly Hills Handicap (G1).
The third-highest-priced offering of the sale produced another apparent record-$4.6-million for a maiden mare who has never been covered. That honor went to perhaps the best-bred three-year-old filly on the planet, the Niarchos family's Myhrr, by Mr. Prospector-Miesque, by Nureyev, consigned by Lane's End as agent. Although Myhrr never made it to the racetrack, agent Reynolds Bell Jr. signed the record ticket on behalf of Jayeff B Stables.
That was the only American buy in the top ten, but by far the most active buyers during the select sessions were Texans Kenny Troutt and Bill Casner, owners of WinStar Farm near Lexington. They purchased 20 horses for $14.8-million in the name of Troutt's wife, Lisa Troutt. Those 20 included five for more than $1-million each, topped by the $1.9-million Grade 2 winner Career Collection, in foal to Gone West.
"We would rather have three mares at $1-million to $1.5-million than one mare at $5-million," Kenny Troutt said. Troutt and Casner have been busy for the past year buying mares to stock WinStar since purchasing the former Prestonwood Farm from the Preston brothers.
"We plan to build up to a certain number; we just haven't decided exactly what the number is yet," Troutt said.
Dispersal blahs
The sensational action on November 6 caught observers somewhat by surprise after a relatively calm opening session-popularly known as dispersal day-on November 5.
Unlike some previous years when the Sunday session was the most star-studded day of the sale, dispersal day included few mares of star quality from the continuing reduction of the late Allen Paulson's bloodstock holdings, the final dispersal of the late Marshall Naify's 505 Farm, the dispersal of John Kluge's Morven Stud, and the dispersal of Robert and Bea Roberts.
Dispersal day topped out at $1.35-million for Electric Society (Ire), a nine-year-old Grade 1 winner in foal to Deputy Minister. She was purchased by agent Alex Scrope for English breeder Gerald Leigh from the Kluge dispersal, consigned by Walnut Green agency.
"We're just a tad below where I thought we'd be overall, but not too far off," Walnut Green's Russell Jones said after the sale. "There have been an awful lot of uninspiring horses, and it's hard for the sale to establish a rhythm." The Morven dispersal totaled $7,386,000 for 36 horses sold.
Emmanuel de Seroux, whose Narvick International handled both the 505 dispersal and the Paulson reduction, said: "Overall, we're pleased. There was a lot of quality in the Paulson sale and the top mares sold well. 505 was a bit up and down. A lot of good mares, if they're not in foal to top Kentucky stallions, it's difficult to get a really top price."
Many of the 505 mares were in foal to Naify's best racehorse, leading California sire Bertrando. The 505 dispersal totaled 32 horses for $5,095,500, while the Paulson reduction rang up $12,791,000 for 50 horses. The Roberts dispersal, consigned by trainer Stanley Hough, sold 79 horses for $2,177,600.
Storm Cat rules
Although six of the top ten buyers at the November select sessions were based overseas, the volume of Troutt and Casner's purchases pushed Lisa Troutt's name to the top of the buyers list, with Ferguson second at $11.6-million and Magnier third.
Taylor Made Sales Agency led consignors at the select sessions by gross with 42 horses sold for $22.3-million, ahead of Lane's End with 27 for $20.5-million.
Storm Cat led all covering sires with ten mares averaging $2,144,500, a record for the November sale.
The son of Storm Bird also led all sires of weanlings, with six averaging $808,333, including the highest-priced foal of the sale, a daughter of Now That's Funny, by Saratoga Six, who was consigned by Gaines-Gentry Thoroughbreds and purchased for $1.2-million by Irish pinhooker Tim Hyde.
Awesome Again, winner of the 1998 Breeders' Cup Classic (G1), led first-year sires of weanlings with four averaging $276,250; he just edged out 1998 Two Thousand Guineas (Eng-G1) winner King of Kings (Ire), who had five foals averaging $270,000. Forestry, by Storm Cat, led first-year covering sires with ten in-foal mares averaging $332,500.
As shown in the accompanying decile chart, the market at the select sessions soared double digits in average in all but the lowest 10% of the market. It is unlikely that the same will be true of the market as a whole at the end of the 14-day sale-the largest in the history of Thoroughbred auctions.
The 21.5% rise in average price for the top of the November market indicates that buyers are not yet the least bit nervous about the future of the market for Thoroughbreds. Commercial investors must project at least nine months ahead for foals bought for resale and 12 to 21 months into the future to estimate what the produce of an expensive mare might fetch at auction.
Buyers of securities on the New York Stock Exchange and NASDAQ have become increasingly nervous about projecting that far into the future over the last six months. Buyers of Thoroughbreds have not.
Hip-by-hip results of the first three sessions begin on page 51.
John P. Sparkman is bloodstock/sales editor of Thoroughbred Times.
