Presentation to the Darley Flying Start Conference at Keadeen Hotel, Newbridge, Ireland
October 25th 2006
Brandon Rice
American Breeze Up Sales as a source of European Racehorses
Good afternoon Ladies and Gentleman, allow me to begin our third and final group of speakers. My name is Brandon Rice and I am an American from Ocala, Florida. I’m here to speak with you about the American Breeze Up sales and their potential to produce European Racehorses. First I will begin by explaining my experiences while preparing two year olds for these Breeze Ups. Second I will list the various Breeze Up sales in America and which ones it makes sense to shop. Third I would like to identify the advantages in shopping this Breeze Up market. And finally I hope that we all leave here with a better understanding of what these sales have to offer.
Personal Industry Experience
My horse background began on a family pre-training and pin-hooking farm in Marion County, Florida. Marion County is where most of America’s Thoroughbreds are broken and trained for the auctions or races. Woodside Ranch is the name of the farm, and it is one of many operations that specialize in preparing horses for Breeze Ups. Training of these yearlings begins in September and each horse’s pedigree, conformation, and soundness are carefully considered to correctly place them in a Breeze Up sale that best fits them.
Some of these horses will suffer from their lack of ability; others will become sore from the workouts at such a young age, but hopefully the majority of them stand up to the pressures of training and are prepared to showcase their talents. One of the hard truths of selling at these Breeze Up sales in America is that if you don’t attain a furlong under 10.6 seconds, or two furlongs under 22 your profitability from sale drops drastically. This fact makes it difficult to successfully sell a horse that is maturing late or simply performs below its ability.
The Many Breeze Up Sales of America
There are 12 Breeze Up sales in America that span from Florida to California and are hosted by four different sales companies. The companies are Fasig-Tipton, Barretts, Ocala Breeders’ Sales, and Keeneland. These sales begin as early as February 7th and continue to late June. I would like to present facts and opinions on four of these sales that have been recognized for selling the best two year olds.
Fasig-Tipton in February
The first I will mention is the Fasig-Tipton Calder sale held in late February in Miami, Florida. This is a select sale that offers approximately 230 head of horses and produced an average price of $404,000 with a median of $200,000. The breezes are held on the dirt and the sale has a reputation for producing American style speed. Many consigners will seek to have their horses sold here but due to the strict selection process and the fact that it is held so early in the spring, only the cream of the crop are granted entrance.
When inquiring about this sale to John Ferguson, his opinion was that the best American two year olds were at this sale. He feels the early maturing horses that are ready for sales at this time of year go on to become better race horses.
A recognizable European success out of this sale would be Brain Meehan’s David Junior who was purchased for $170,000 and won the G1 Dubai Duty Free and the G1 Eclipse S. His total winnings to date are £2.4 million pounds. That’s substantial. The successful European two year old Sander Camillo was also bought from this sale for $500,000.My general opinion of this sale is that there are top quality horses for top quality prices, and a buyer must be prepared to spend $300,000 or more for the horse he desires.
Barretts in March
The second sale I would like to mention is the Barretts’ Select sale in mid March that’s held in California. These horses breeze on a dirt track and have attracted the Japanese buyers for many years. The sale consistently offers around 200 head, and for 2006 the average was $155,000 with a median of $75,000. A recent American success story from this sale is Dubai Escapade who went for a premium of $2,000,000.
This sale attracts less middle market buyers from the east coast of America due to the location and consequently has less competitive bidding to drive the prices up. My opinion of this Breeze Up sale is that smaller buyers have an opportunity to purchase select horses that would usually go unsold because of the lack of middle market bidding power.
Ocala Breeders’ Sale in March
The third sale worth mentioning is the OBS Select sale in Ocala, Florida. This sale is held on the third week of March. The breezes are on the dirt and the sale has become a successful venue for two year olds. Many buyers compliment the sale for continuing to offer a large amount of horses and still maintain the select sale criteria. Last year 535 horses were offered and the horses averaged for $85,000 with a median of $75,000. Having so many horses to look through can be exhausting, but the chances of a middle market buyer finding a horse within his price range rises.
A large contributor to the size of this sale is due to the fact that it is adjacent to most of the consigner’s and pin-hooker’s farms. One perspective of this sale is that it is full of horses not qualified for the Calder sale and that it may be difficult to find your Classic horse here. My opinion is that this sale can be highly successful to shop at for buyers with all size cheque books. A great amount of horses equates to a great amount of opportunity.
Keeneland in April
The final sale I’d like to mention is the Keeneland April sale in Lexington, Kentucky. This sale is held in mid April and in prior years it has been the only American Breeze up sale allowing the consigner the choice to breeze on the turf or dirt. With the installation of Keeneland Race Course’s Polytrack surface, the Breeze Ups will now be offered on the poly or turf. This sale consistently offers around 250 head of two year olds, and averages have climbed to $218,000 with a median of $135,000.
Many of the horses attending this late spring sale have been later maturing two year olds or horses that prefer the turf. Due to the American market preferring the dirt sprinters that are ready to run at two, this sale provides many top pedigreed athletes for a bargain price. Keeneland anticipates a greater Californian, Canadian, and hopefully European influence from buyers due to the many race courses changing around the world to Polytrack.
A large struggle of this Keeneland Breeze Up sale has to do with scheduling conflicts with the Tattersalls Breeze Up in England and the Inglis Easter yearling sale in Australia. The three sales fighting for the international market’s attention has certainly kept European buyers to a minimum at this Keeneland April auction. Geoffrey Russell explained to me that this sale has been primarily attended by the Americans and the Japanese, and that it simply falls at difficult time for the Europeans to attend. Despite poor European attendance in the past, I believe this sale is an untapped source of runners which is a likely source for future European success stories.
Advantages of Buying at Breeze Up Sales
It is now time to discuss the many advantages and perceived disadvantages of a breeze up sale for European buyers. A clear advantage would be that these two year olds are ready to run. Anywhere in the world a ready to run horse will cost less time and money in training fees and will provide immediate gratification for owners.
Another advantage with the two year old is that it is tried, tested, and proven by the time the horse reaches the sale. The demanding training programs forced upon these young horses will immediately weed out the unsound, weaker individuals. An outdated perception of these breeze up sales is that they are broken bone sales where you only find bottom market horses. The fact is 16.8% of total stakes winners in America came out of American Breeze Ups in 2005, and as of September of this year 16.4% of all stakes winners have come from the breeze up sales. Those statistics alone show that these American breeze up sales carry quality stock.
Another advantage to consider is, when looking at two year olds they are nearly fully developed and much less estimation goes into evaluating their confirmation. This allows a buyer to feel more confident about how these horses will mature and perform.
The final obstacle that must be considered has to do with the horse’s well being during mandatory quarantine before shipping over to Europe. A person may question if 30 days of quarantine time at an American farm before shipping to Europe is good for the horse physically and mentally. Other people share my same feelings that these breeze up horses need ample time to recover from the stresses of the sale, and the approved quarantine farms can actually pose as a useful tool to fully recover the horses before commencing training in Europe.
Conclusion
In conclusion to the many facts and figures I’ve presented this afternoon; I would like to share with you what I’ve come to understand about the American Breeze Up market and where Europeans can source racehorses. First of all there is an entire industry that specializes in preparing Breeze Up horses. These Breeze Up trainers prepare horses to have strong two year old years. Second, the most desirable sales to shop at are those that have a selection criterion and still manage to provide plenty of horses to feed the middle market. A large catalogue will produce more top quality horses and allow the middle market to participate. Third, the advantage of buying two year olds is that they are a ready to run product that has already been tested to hold up under training.
My opinion is that the Keeneland April sale is an untapped source of European type horses. Many consigners nominate their horses for this sale knowing their horses will prefer the turf or need the extra time to develop. Currently Keeneland April offers very well bred horses for bargain prices. Fasig-Tipton Calder has been known for the quality horses they receive, and this is certainly evident looking at the sale’s average. I still be believe that the best American two year olds will be found at this sale, and if a person shops the sale hard enough he can find another David Junior.
Ladies and Gentleman I’d like to thank you for your time and attention, and I hope everyone has enjoyed my presentation. Please ask any questions that come to mind when we finish.
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