Sales Time

[JJ Flash 2,135]

If you want to find out the health of the game look no further than sales results.  Be interesting to see how things fare up north given the dearth of horses/owners up that way. Online buyers from offshore will dictate the top end but the rest will surely prove challenging or is the game more healthy than i give it credit for

[tasman man 742]

3 hours ago, JJ Flash said:

If you want to find out the health of the game look no further than sales results.  Be interesting to see how things fare up north given the dearth of horses/owners up that way. Online buyers from offshore will dictate the top end but the rest will surely prove challenging or is the game more healthy than i give it credit for

Prices seem pretty good , with some big money paid for trotters plus fillies averaging well over $50k. 

Buyers /Owners proving very resilient when you add on the costs which incur before the horses make it to the track !

Apparently not many Aussie buyers !

[2Piper 408]

Closet yearling to one of my mares went for $55k. 

Others from that family went between 15k and 90k.

[2Piper 408]

Just wondering how the new Auckland movement restrictions  re covid effect attendance in Chch.

[enteebee 61]

Mick Guerin tweeted that sales postponed a week

 

[JJ Flash 2,135]

Looked to be a great sale all things considered. When the going gets tough Rogie gets going. What a machine he is. Plenty of new records so all is not that bad. Canterbury delayed sale will prove to be the making or breaking of the sale given numbers involved

[ivanthegreat 1,123]

Auckland Trotting Club should be buying all horses so it can run  meetings without 6 horse fields , and Dogtor Lug  can leave his horse at home and save the public $10k a week. 

[JJ Flash 2,135]

Day One of trading at the 2021 National Yearling Sale kicked off with a strong benchmark after the Sale broke NZB Standardbred records selling 107 lots for a total turnover of $5,370,500, increasing more than 20% on last year’s aggregate.

The average rose to $50,192, with the median increasing to $40,000, while the clearance rate settled at a standout 82%.

Many breeders will be happy for a change and have been  quick to compliment the new sales operators NZBS. Definitely  a lot more professional these days even without Steve Davis

[lamour 673]

There is a lot  of doom & gloom posted here but  looking at the  sales and the fact Addington have been able to increase stakes indicates things may not be as bad as some think.

While  betting figures seem  hard to come by and we rely on general statements lacking detail from one source or another,   Addington  would seem to be doing alright in this regard.  If their betting figures had decreased significantly I can't see how they would be able to achieve the increases they have.

For sure the glory days of the 60's & 70's are over, never to return but there is still significant interest and participation in our beloved industry.  The sport will adapt and like any sport or industry will   need to keep changing to remain relevant.

I for one am optimistic the  sport will  survive  and keep giving its followers as much pleasure in the future as I have got being involved in the small way I have. 

[JJ Flash 2,135]

13 minutes ago, lamour said:

Addington  would seem to be doing alright in this regard.  If their betting figures had decreased significantly I can't see how they would be able to achieve the increases they have.

The question might be asked how these increases were funded. From op profits or using reserves or combo of both.

 

13 minutes ago, lamour said:

The sport will adapt and like any sport or industry will   need to keep changing to remain relevant.

Great points and might explain why we are where we  are now?

[eljay 1,719]

On 2/14/2021 at 8:33 PM, 2Piper said:

Just wondering how the new Auckland movement restrictions  re covid effect attendance in Chch.

At sale Sunday, sleep home, booked to fly out on the "Red Eye" Monday morning.      Remember her of the waving arms didnt close off the North till 7 pm Sunday night.       

[lamour 673]

1 hour ago, JJ Flash said:

The question might be asked how these increases were funded. From op profits or using reserves or combo of both.

 

It's a good question JJ and I had hoped the box seat or harness link or the weekly Addington update would cover this.  They did mention the  stakes increases in the  latter , but almost in passing.   No  detail  how they were achieved.

I  was told a couple of years ago that Addington were paying off bank loans on their property investments at a significantly faster rate than the bank required  so its possible  more  funds have become available  as loans have been retired, . but we don;t know.    They did say in the Addington weekly update that betting  was up if I  remember correctly.

Either  way, if betting had plummeted as  some would have you  believe I doubt they could have funded the increase.  They also said on the update that they had been conservative in the stakes increases implying they are sustainable.

Would be good if Greg O or Mick  or some racing journalist did more of an in depth  article on this

[JJ Flash 2,135]

16 hours ago, lamour said:

Would be good if Greg O or Mick  or some racing journalist did more of an in depth  article on this

That requires investigative skills/outcomes that might alienate them to the respective body either at present or in the future IMHO

[Blue 1,095]

A quick count says there were 68 out of 130 that sold for $35K or less (incl passed lot reserves) so there's some reasonable buying out there. A couple sold for six figures doesnt really give a true picture.

[tasman man 742]

1 hour ago, Blue said:

A quick count says there were 68 out of 130 that sold for $35K or less (incl passed lot reserves) so there's some reasonable buying out there. A couple sold for six figures doesnt really give a true picture.

Currently the bigger quandary are the running costs and the stakes on offer.

Start adding on the costs after the fall of hammer , up to the time of qualifying , and not all do , and another $50 - $80k can be added . More in North cf South.

Then the Stakes contested for....a precious few can win the worthwhile stakes .Most get peanuts !

Buyers /Owners need to be very resilient !

Industry bosses talk about 30% of costs returned ...I doubt that includes the purchase price.

[chelseacol 2,488]

3 hours ago, tasman man said:

Currently the bigger quandary are the running costs and the stakes on offer.

Start adding on the costs after the fall of hammer , up to the time of qualifying , and not all do , and another $50 - $80k can be added . More in North cf South.

Then the Stakes contested for....a precious few can win the worthwhile stakes .Most get peanuts !

Buyers /Owners need to be very resilient !

Industry bosses talk about 30% of costs returned ...I doubt that includes the purchase price.

 

Yep it is a crazy economic model.

Pretty marginal on the selling side too - for the first time I've got a small interest in one going through the ring. Interesting when you add up all the costs etc. Could've done without another week of it being looked after too !!

[tasman man 742]

1 hour ago, chelseacol said:

 

Yep it is a crazy economic model.

Pretty marginal on the selling side too - for the first time I've got a small interest in one going through the ring. Interesting when you add up all the costs etc. Could've done without another week of it being looked after too !!

Good luck selling.....can be a stressful time for many.

I never sold Standardbred , but my experiences with Thoroughbred have seen dismal results.

Our mare TD has had 4 x foals race , all winners but nothing major ....one stakes placed.....plus the foals generally considered big.

I have attended some sales with small breeders of standardbreds and it a stressful and often disappointing outcome. But some leave happy !

Some very happy !

[Nelli 432]

$50-$80k to qualifying! Don't know any Waikato trainers that charge that. Could add up to that over a successful horse's career but a baby from the sales more like $5-$8k/year

 

[chevy86 2,704]

9 minutes ago, Nelli said:

$50-$80k to qualifying! Don't know any Waikato trainers that charge that. Could add up to that over a successful horse's career but a baby from the sales more like $5-$8k/year

 

You obviously only have a 10% share of the horse? Costs $5-8K for say 2 months agistment, breaking and early education with starting gates etc. Generally with pre-training , agistment, vets, transport to trials etc, etc I've found it to be $25-30K per year so best you don't talk about the pony looking in your kitchen window 9 months of the year Nelli.

[tasman man 742]

3 hours ago, Nelli said:

$50-$80k to qualifying! Don't know any Waikato trainers that charge that. Could add up to that over a successful horse's career but a baby from the sales more like $5-$8k/year

 

I hope you had some successful horses with champagne results on a beer budget.

I probably talking extremes   but the unexpected things especially injuries requiring an operation and rehab often blow any budget plan.

But  I talking must haves / hard to avoids on fall of hammer.

Saw a thoroughbred invoice after sales recently and it Included Hammer fall plus GST , Insurance , 2x Entry fees for sales series , transport to agistment/breaker , foot trim/shoes remove and drench.

Standardbred now....may be paid up for  many series ,and vet test and x-rays may be presale but once hammer falls the costs start.

Work on average of last weeks sale.......over $50k [ $55k for fillies]

GST[ 15% ] plus Insurance and sundries like transport to breaker will immediately require $10 k .

Agistment incl feeding and possibly gelding if a colt followed by breaking in will add another $10 k.

The horse will need gear as it starts its training to to become a racehorse.......In my experience its close to a year in and out of training to decide if it is going to be a racehorse.......add a conservative $20 k.

In recent times I've had shares[own and leased] in about 30 x harness horses and probably some 8 have simply not made it to qualifying after having this full experience ! An average of say $40 k in costs per horse down the dunny with maybe a little residual thru sale !

Plus in total , only about 8 have raced as 2 year olds !

My shares have been in both the North ,including Waikato and the South Island.

Once trialling and qualifying the training fees are boosted by track fees ...say $170 month , regular shoeing , chiropractor , vitamins , dentist , transport , sundries plus the unexpected Vet fees .

On the credit side once a horse starts racing it earns stakes and it is estimated that the average return is below 30%.

A lot of horses are sold to recoup some $ and stop the bleeding.

The odd Christian Cullen ,Changeover and Lazarus will emerge but for most owners winning races is very hard indeed and in harness where most Race stakes are between $8 -$12 k with the winner getting between $4500 and $7000 its a tough business.

Hence many horses now in syndicates with a lot of owners ....running syndicates brings extra costs like Mgt fees ,accounting/audit etc. Big syndicates that want to guarantee or cap costs charge up to $40 per 1% a month suggesting that fees could be $4k per month and travel between the Islands will get that high .

Thats my experience .....like in most things ,the thrill of a decent win is long remembered , maybe a photo on wall [ $170] too , long after the price is forgotten.

As my old mate Tim Vince says 'If you want to make a small fortune from owning horses ,start with a large fortune !' OR as another wiseman told me.....Don't own a horse unless putting $40,000 k in a paper bag and setting fire to it wouldnt phase you one bit '....I think that number may have gone up !

 

[JJ Flash 2,135]

Solid bidding all afternoon at the trotters section of Christchurch Sale. One vendor was just about speechless when he saw his horse knocked down for big money

[JJ Flash 2,135]

The most common word heard at yesterdays pacing sale was - Passed in. Many unwanted by buyers , others with unreasonable expectations. Sums up most sales but passed in lots around 65% thus far

[Chris Wood 1,576]

Wasn’t there a stack of passings JJ, you might need a ready to run sale for the harness game.

[JJ Flash 2,135]

1 hour ago, Chris Wood said:

Wasn’t there a stack of passings JJ, you might need a ready to run sale for the harness game.

They tried that a few years back but it died a natural

Start today not flash either although Cran has just paid 310k for a full brother to Chicago Bull by Bettors Delight

[JJ Flash 2,135]

Vincent, Bettors and Art Major - yes . Sweet Lou and Mikki no real  buyer interest.

Sadly it turned  into a passing contest at ChCh pacing sale. Some vendors were not in sync with market which was depressed to say the least from what i observed over the last 2 days.

Anyone else see it differently