A REASON FOR HOPE?
By Ray Paulick
What’s this, good news on a Tuesday? Most Paulick Report readers expect to have to wait until “Good News Friday†for their weekly dose of positive developments from people, places and things in the Thoroughbred world. But some things just can’t wait.
This will be a brief summary, but here is today’s good news:
- First, that’s not a typo you see at the end of the Fasig-Tipton Saratoga yearling sale results sheet from Monday night. All economic indicators were up from the first night of the 2008 sale. The gross receipts of $25,470,000 was up 40.3% from last year, the average of $335,132 increased by 10.7% and the median of $250,000 increased by 6.4%. Better still, the percentage of horses not sold declined to 28% from 29.4% in 2008.
The physical presence of Sheikh Mohammed, friend of the sale company’s new Dubai owner, served as both an economic and morale boost for breeders and consignors of sale yearlings. He supported his own stallions and was the leading buyer—no surprise there—accounting for 21.6% of the total. But his first-night purchases were only slightly higher than what he bought in absentia in 2008 when agent John Ferguson spent $3.1 million to buy yearlings in the sheikh’s name (16% of the first-night total). In other words, this year’s price increases were not caused by one-man.
In the current climate for both the general economy and the Thoroughbred industry, the absence of double digit declines is considered a big win for a horse sale. No one has even considered double-digit price increases. Can they hold up on night two?
– Second, the New York Racing Association has released statistics showing a very positive start to the 2009 Saratoga race meeting. While it’s true that weather plays a big part in the success or failure of the upstate Spa, I think the statistics for the first 12 days (attendance up 4.8%, on-track handle up 8.3%, all sources handle down just 1.7%) can be attributed to more creative and aggressive marketing, a continuously improving Internet strategy and platform compared to years past, and, of course, good racing, with larger fields than the first 12 days of 2008.
As a NYRA press release pointed out, the 1.7% decline is much less than the national 13.4% in July and 10.9% drop since Jan. 1
On the bad news side, the Belmont Park spring meet was not good, with all sources handle down 13.9% and on-track attendance falling 17.2% from 2008.
– Finally, Del Mar got off to a quick start in on-track business, with some new promotions and a record crowd on opening day. Ongoing concerns with breakdowns continue to plague the Southern California track, and off-track business hasn’t reflected the strong on-track numbers.
Still, we’ll take all the good news we can get.
Tags: Del Mar, fasig-tipton, Good News Friday, handle, New York Racing Association, nyra, Paulick Report, Saratoga Select, sheikh mohammed, yearling sale
August 11th, 2009 at 8:13 am
Thanks!
August 11th, 2009 at 8:27 am
When one looks at ticket prices for MLB and other sporting events that dominate the spring and summer months - and toss in the economic tsunami - the tracks should be poised to offer not only an alternative venue for consumers, but become part of the mix when people are looking to spend “sports” dollars. I just wish that all the factions within the industry can toss aside their pithy feuds for a few minutes and take a hard look at the potential available at a time when sports fans are looking for viable live options that won’t take maxing out a couple credit cards just for some moderately priced tickets, hot dogs and beer.
August 11th, 2009 at 10:16 am
We have a sale in Ocala in two weeks time. Maybe Sheikh Mo and John Ferguson can fly in and spend some dollars on a few non-Bernadinis and non-Medaglia D’Oros. Blue collar pedigrees being sold by blue collar folks.
I have a sneaking feeling we won’t be seeing the big bird land at Ocala Regional Airport. So, we will stay anchored in the real world for now.
August 11th, 2009 at 10:23 am
I’m confused. Handle and attendance declining, but horse flesh rising. Doesn’t that distort the economics of racing even more? Expensive horses running for cheaper purses. I wonder if the purse spread between lower level horses and stakes horses is too large to be justified by performance.
August 11th, 2009 at 10:56 am
Until the race tracks stop catering to the wealthy, they will never attract the everyday man. My son who just turned 21, so of course he wants to drink, can’t afford a $12.50 Margarita. Come on guys, if you want to attract the kids you’ve got to make it affordable. I’m thrilled the sale prices are rising, no thanks to our economy or our president!
August 11th, 2009 at 11:39 am
I’ll take any good news I can–As I write this I bet a few crows are looking for the bad in the news.
August 11th, 2009 at 1:41 pm
Phil, the horse market and handle are only remotely related.
August 11th, 2009 at 2:51 pm
Joe said, “Phil, the horse market and handle are only remotely related.”
That’s the point, Joe. They should be related. The purpose for an investment (assuming a race horse is an investment) is what is the possible, or probable, return on that investment, both racing and breeding. If racing handle is diminishing, unless supplemented by other sources, than the future cash flow steams of racing and breeding animals is diminished. Logically, the value of those race horses should diminish also.
August 12th, 2009 at 9:46 am
Total joke,Arabs buying their own horses.Promotional scam for Bernardini.Then the newbie investors jump on the Bernadini bandwagon and get a royal education 2 or 3 years down the road.
The little people in the business will be selling in Ocala and Keeneland September.They are the bulk of this business yet they will get none of the fanfare that the Shieks get.
What’s wrong with horse sales,reporters giving all hope because the shieks buy their own horses.How about reporters giving some hope and inspiration to the little investors.The bulk of the thoroughbred industry,instead of the select few where money means nothing to them.They spend $50 million plus a year in the quest to win one race—then a little guy pops in and wins with a horse like Mine That Bird.