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Today's Racing :

Record decline at Keeneland yearling sale

The marathon Keeneland September yearling sale drew to a close on Monday with some of the biggest declines in key statistical categories in recent history as gross receipts fell 41,5%, the average was down 33,2% and the median was off 40,5% for the 14 sessions. Overall 3 159 yearlings sold for $191,859,200 (last year 3 605 sold for $327,999,100) at an average $60,734 (last year $90,984) and a median $22,000 (last year $37,000).
This year 27,5% of the horses through the ring did not sell, compared with a “reserve not attained” rate of 24,8% last year.
Keeneland sales director Geoffrey Russell said the downturns are “a market correction resulting from over-production, production costs that have been at their highest levels in history and the effects of the world-wide financial crisis.”
He noted: “The buyers were here, but they weren’t able to spend because they didn’t have credit (lines at banks). I don’t think anyone was surprised that we were down, but I don’t think anyone thought it would be this much. But no one could have imagined that we were going to have an international financial calamity.”
Silver lining
However, Russell added there were “some silver linings in the 2009 auction”, with “recent forecasts of fewer mares being bred and smaller foal crops being produced indicating the breeding industry is taking steps to curtail the recent run-up in production.”
Russell commented “another positive at the sale was increased activity from international buyers, especially those from emerging markets such as Russia.”
Russell noted: “When they first started coming, the Russian buyers would come later in the sale. Now, as they have gotten a taste for better horses and the horses they have bought here have done well over there, they are coming in earlier and buying better horses.”
Need to refocus
Russell also emphasised that, while his job is to sell horses, “some elements of the industry have lost focus of the main component within the industry: racing.”
He told bloodhorse.com: “Selling horses for large sums is important to any breeder and to Keeneland. But there must be a correlation between sales and the ability of owners to have a chance at profitability on the track.
“We have to get the focus back to racing.” Russell said, “attendance and handle at US tracks are in a tail-spin that must be reversed for racing and sales to prosper. This (the sales) is not the end-all. Racing is the most important part of this. The fact you sell a yearling here is great. But if he doesn’t have a chance to get to the races, it isn’t so great. It is something the industry needs to address.”
- Breeding & Racing Update

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