FASIG-TIPTON LEARNS AN IMPORTANT LESSON
March 11, 2009: Fasig-Tipton cancels its fall yearling sale, scheduled to begin Oct. 26.
April 1, 2009: Fasig-Tipton reinstates the fall yearling sale.
What they said then: “A sale should be viable for consignors, buyers and lastly for the sales company. The feedback we are getting from our constituents indicated this was not the case of the October yearling sale. This was also the majority position at our advisory board meeting in early March.” – Dan Pride, Fasig-Tipton’s chief operating officer.
What they are saying now: “Responding to input from several October consignors and buyers, Fasig-Tipton has reinstated its Kentucky fall yearling sale, which will be held at Newtown Paddocks, Lexington, on Oct. 26, 27 and 28.” – Fasig-Tipton press release
“We certainly value the feedback that our customers shared with us. One of the main goals of the company will always be to listen and react to what is important for our customers.” – Fasig-Tipton chairman Walt Robertson.
So what happened in the three weeks between the time the sale was cancelled because “constituents” said it was not viable and it was reinstated because of feedback from buyers and consignors? Who were those “constituents” polled about the original decision to cancel?
Fasig-Tipton, under its new ownership and a retooled management team (the addition of Dan Pride is the main difference), wants to focus on the auctions that bring in the most money: the 2-year-olds in training sale held recently at Calder, the Saratoga August yearling sale, and the November mixed sale. The Dubai-based owners are investing significant money on capital improvements and marketing to that end. However, the company cannot risk alienating some of the bread-and-butter consignors who have been loyal to the July and October Kentucky yearling sales, which may not be as glamorous or profitable but are an important marketplace for breeders.
By cancelling the October sale, Fasig-Tipton was shooing breeders of more than 1,000 horses over to the other side of town to the tail end of Keeneland’s September yearling sale or forcing them to incur shipping expenses by offering them at the Fasig-Tipton Eastern fall sale in Maryland. Neither was a positive public relations outcome for Fasig-Tipton.
The flawed decision sounded awfully similar to what happened in December when the Breeders’ Cup board outraged many breeders with a decision to cut out the stakes supplements that have been part of the Breeders’ Cup program from the outset. That decision was reversed in a matter of days. This one took a few weeks for the complaints to percolate high enough to get the attention of Fasig-Tipton’s management team. Both decisions smacked of elitism, suggesting not enough attention was paid to the grass roots or “blue collar” breeders who don’t get elected to boards of directors. Both reversals were justified and proper.
Lessons learned.
Copyright © 2009, The Paulick Report
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Tags: breeders' cup stakes supplements, Dan Pride, fasig-tipton, fasig-tipton calder sale of 2-year-olds in training, fasig-tipton fall yearling sale, fasig-tipton october yearling sale, Keeneland, newtown paddocks, Paulick Report, Ray Paulick, saratoga, walt robertson, yearling sales
April 2nd, 2009 at 3:24 pm
What is the betting, the “constituents” were the big, posh consignors who patronized F-T with only the very lower-end or their Keeneland RNAs?? Yet another example of the tyranny of the elite in this business .
Changing ownership has not changed October F-T’s actual constituency. It is and will continue to be the working-class, blue collar breeders. What that sale has always lacked is buyers. If some capital was spent on attracting a broader group of buyers, it would do more for the sale than spending money to make the entrance look like a So. California Country Club.
April 2nd, 2009 at 3:30 pm
I’m quite certain the Dan Pride thought he was going to walk in there with the socalled unlimited financial backing of Sheik Mohammed (and no matter what anybody says, that is who bought it) and turn FT into a strictly “elite” sales venue. While that may be a good plan for the long run, he thought by throwing around money, committing immense capital to “improvements” and such was going to immediately bring the results he expected. (cause, hey it worked over at Darleybell)….Guess what Dan….WRONG! It’s one thing to throw around millions of dollars to individual stallion owners, but another to take a DIVERSE company with a different constituent and make it what “you ” want overnight.
One thing Dan should consider in the future…..NEVER CONFUSE INTELLIGENCE WITH A BULL MARKET….It’s ohh so easy to look “smart” when everything is going well. Wall street knows that and it’s time many in this industry wake up and realize it’s not only the TOP that matters in this industry, but the middle and heaven forbid, even the lowly bottom….. Gosh, I wonder if it was his decision to dump Kafwain as well???? I mean who needs a horse with a Derby contender and an Oaks contender…..send that one down the road……
April 2nd, 2009 at 9:21 pm
You hit this article 100% right. That is the whole attitude of Lexington, toward the smaller people in the business. They spent over a million dollars on an entrance way like it was to some Vegas Resort. Comparing Avioli and Pride and their decisions, reminds you of dumb and dumber. If you want to add another clueless, put Alex Waldrop in there and you have the three stooges.
April 2nd, 2009 at 9:56 pm
LCM…Kafwain was sold by Darley to stand at Hurstland Farm in late October 2008, nearly two months after Dan Pride left Darley to join the Fasig-Tipton management team.
Ray Paulick
April 3rd, 2009 at 11:10 am
Ray,
I realize the Kafwain deal was “done” after Pride left Darley, but I would imagine the deal was in the making for a while. It usually takes quite a while to shop a stallion around, especially in a downturning market. But “if” Pride had no “input” in that decision, my sincerest apology!!!!!
April 3rd, 2009 at 1:04 pm
Note the moral of the story.
“They” can ignore or swat one gadfly. A swarm brought a better result.