Breeders' Cup Key to Success at KEENOV

Officials at Keeneland were cautiously optimistic that the momentum created by hosting the first-ever Breeders' Cup in the history of the track would carry over into its November Breeding Stock Sale. Upon conclusion of a 12-day run Friday in Lexington, sales executives, consignors and buyers alike reported that it was very much 'mission accomplished' and a job well done.

“I thought the sale started off very well. The whole goal was for the Breeders' Cup to enhance the sale and the excitement of the Breeders' Cup did roll over into [the two Book 1 sessions] Monday and Tuesday,” commented Geoffrey Russell, Keeneland's director of sales. “The quality of the offerings our consignors brought was spectacular, including Take Charge Brandi, of course. We also said that we anticipated that some of those foals would be a unique opportunity for people to buy, and the market definitely reflected that in the end.”

Highlighted by a diverse buying bench, no fewer than 22 horses achieved seven-figure pricetags, including the $6 million sales-topper Take Charge Brandi (Giant's Causeway–Charming, by Seeking the Gold), compared to 18 in 2014. John Sikura's Hill 'n' Dale Sales Agency consigned the 2014 Eclipse Award-winning juvenile filly on behalf of her owner Willis Horton, and Sikura saw fit to add the filly to his burgeoning and high-class broodmare band. As was reported first by TDN Editor-in-Chief Jessica Martini, Take Charge Brandi will visit Hill 'n' Dale's new stallion Curlin in 2016.

The final pricetag was the highest for a mare at the November sale since the Hill 'n' Dale-consigned Playful Act (Ire) was sold for $10.5 million at the 2007 November sale.

In addition to the 16 racing or broodmare prospects to attract bids in excess of $1 million, an unprecedented half-dozen weanlings commanded similar pricetags. Take Charge Brandi's multiple Grade I-winning granddam Take Charge Lady (Dehere) supplied the foal topper, as her filly by Claiborne's outstanding young sire War Front was hammered down to Mandy Pope's Whisper Hill Farm LLC for $3.2 million. The March 19 foal, a half-sister to champion and MGISW Will Take Charge (Unbridled's Song) and to GISW and new sire Take Charge Indy (A.P. Indy) in addition to the dam of Take Charge Brandi, was bred in Kentucky by Eaton and was consigned to the November sale by Reiley McDonald's operation. The $3.2-million hammer price established a new North American record for a weanling of either sex, eclipsing the previous mark of $3 million established just last year for a daughter of Tapit. The latter's dam, Serena's Cat (Storm Cat), was also responsible for this year's second highest-priced weanling, a Hill 'n' Dale-consigned son of War Front, who fetched $2.6 million from M. V. Magnier. The value of the colt's page was further enhanced when his half-brother, 'TDN Rising Star' Honor Code (A.P. Indy), ran on gamely to be third behind Triple Crown winner and certain Horse of the Year American Pharoah (Pioneerof the Nile) in the GI Breeders' Cup Classic up the hill at the racetrack Oct. 31.

“When we promoted this catalogue, we did tell people that there were weanlings in there that normally aren't offered,” Russell explained. “That they were one-of-a-kind and likely never to be re-offered again. The market obviously reacted very favorably to them, they were very well received. Breaking the North American record for a filly two years in a row is very rewarding.”

The November Sale also included complete dispersals from Nat Rea's Regis Farms and from the late Jerre Paxton's Northwest Farms. Rea, who is breaking away from Thoroughbreds to focus on other business interests, realized gross receipts of $10,602,000 for 37 horses sold, the best of which was GI Kentucky Oaks runner-up Shook Up. The daughter of Tapit was hammered down to Three Chimneys for $1.65 million. One of the best runners to race in Paxton's silks in recent years was Stopshoppingdebbie (Curlin), who closed her career with nine wins from her 10 trips to the post. Offered in foal to top sire Medaglia d'Oro, the 5-year-old mare was purchased for $410,000 by Town & Country Farms and Pollock Farms. The Northwest dispersal grossed just under $4.3 million.

The always-popular WinStar Racing draft Nov. 10 grossed better than $1.4 million, with recent Keeneland maiden winner Cowboy Rhythm (Tapit) (hip 3321) selling to Eclipse Thoroughbred Partners for $335,000.

In all, Keeneland reported a total of 2,575 horses sold for gross receipts of $218,959,400, some 6.3% higher than last year when the sale was conducted over just 11 sessions. Total sales represent the highest gross since the November Sale record of $340,877,200 set in 2007. The cumulative average of $85,033 improved by 3.7% over the corresponding figure from last year, while, in a market that proved at least somewhat polarized, the median price declined by 14.3% from $35,000 to $30,000. Continuing a trend across all sales in 2015, the cumulative buyback rate drifted up this year to 25.2% from the 21.8% in 2014. Russell believes that is just the nature of the beast.

“I think the fact is that buyers are very critical and have a very tight criteria,” he said. “If the mare meets the criteria, they're happy to take good money for them and if it doesn't, they're not interested. The criteria are getting tighter and tighter every year.”

Variety At the Top of the Market

The 22 horses that brought $1 million or more were purchased by 18 unique entities, both domestically and foreign-based. Only Sikura/Hill 'n' Dale (see below), Crupi's New Castle Farm (see below), Barbara Banke's Stonestreet Thoroughbred Holdings were repeat customers at the uppermost level, while other domestic participants included Tom Ryan's DATTT Farm, Willis Horton, Jon Clay's Alpha Delta Stable (through agent Reynolds Bell Jr.), Willis Horton, Richard Santulli's Colts Neck Stable and the Heider Family (via agent Cecil Seaman). Familiar foreign buyers included Sheikh Hamdan's Shadwell Estate Company, M.V. Magnier and Moyglare Stud, while Katsumi Yoshida paid $1.2 million for GISW and GI Breeders' Cup Distaff runner-up Don't Tell Sophia (Congaree), despite an unfavorable current yen-to-dollar exchange.

“I see that as extremely positive,” Russell opined, reflecting on the diversity at the top of the market. “Nobody bought more than two million-dollar horses. It's good to see a good range of buyers playing at that level and I think it's very healthy for our industry. I think our industry is in a very good position with plenty of new investment coming in and continuing to invest, particularly at the top end of the market. I think that bodes very well for us.”

Emerging Markets Approach Working Well

A decade and a half ago, at their own initiative and at their own expense, officials at Keeneland made the decision to cast their net beyond familiar borders in an attempt to make inroads into untapped or emerging markets. A quick review of the sales sheets proves that the undertaking has been well worth the effort. While there is plenty of participation from the United Kingdom, continental Europe and the Pacific Rim, there are also names on the sheets representing countries like South Korea, Saudi Arabia, South American nations and Turkey. It is an approach Russell clearly takes pride in.

“All the markets we've been working on for the last 15 years, we've shown again that if we put together a good, diverse catalogue, people will come to Central Kentucky to buy our product,” he said. “We do spend a lot of time and effort working these smaller or emerging markets. You can see people from these places even working the sale [Friday]. You can find people here from the Phillippines, Korea, places like that. So we're not just about Europe and Asian markets, but we also have these emerging and developing markets here. We do that ourselves. We understand that this is one of our roles and we are happy to do it. It is very rewarding to see the work that we do 52 weeks a year bearing fruit, at both the September and November sales.”

'Hill' Tops Among Consignors, Buyers

John Sikura | Keeneland

In 1985, the Hill 'n' Dale Sales Agency ended the November sale as leading consignor, with 13 horses sold for a shade under $8.9 million. For the first time since, John Sikura's operation ended the auction atop the ledger, its two top sellers accounting for $8.6 million alone. Overall, Hill 'n' Dale sold 97 horses for $28,392,700, easily outdistancing perennial leading consignor Taylor Made, who finished clearly second. No consignor had topped the sale with fewer horses since Walmac International sold 75 horses for a sale-best $14.5 million back in 1988. It was truly a remarkable sale for the boutique consignment, which offered eight of the 22 horses that were ultimately knocked down for $1 million or more, including half of the top six weanlings. Hill 'n' Dale also bred the $2.6-million War Front–Serena's Cat colt in partnership with Dell Ridge Farm. Hill 'n' Dale closed the sale as third-leading buyer, as they paid $1.8 million to add MGSW Aurelia's Belle (Lemon Drop Kid) to the broodmare band.

“The sale went very well for us; it was very gratifying,” Sikura said. “We brought a special group of horses and we were rewarded in the ring. It wasn't completely surprising to us because we thought we had a very good group. You never know until it happens. We're very happy with the way it turned out.”

Though he tasted broad success, Sikura expressed a commonly held belief that the market can be very fickle at times.

“With the obvious flaws or negatives–like very late cover dates or spotty produce records or middle-aged mares that haven't produced yet–you're severely punished,” he opined. “The barren mares no longer in foal are tough to sell because people want to get an immediate return.

He continued, “The underpinnings and stabilizing force of the business is the breeding industry, because we supply the product that people buy to be racehorses. That's too simplistic, but without that supply of horses you don't have the business. The foundation of the business starts with the breeders, and they express confidence in the marketplace by buying new stock and they find out if that confidence was well placed depending on the future yearling sales. People make a prediction based on what they've experienced the previous September–and November is right around the corner–so you get a pretty immediate reaction from the Keeneland September Yearling Sale and whether people want to move forward or not.”

Geoff Russell also paid homage to Sikura's accomplishments.

“John understands this market very well,” Russell commented. “He doesn't have huge consignments, but he has very high-quality consignments. He came into the sale with both guns blazing. He had planned on bringing his best quality here and we were happy with the way the market reacted.”

Crupi Makes Splash Among Buyers

Jimmy Crupi's New Castle Farm is perhaps best-known as a yearling-to-juvenile pinhooking operation, but is not a name one would predict to appear at the top of the sales sheets. But the Florida-based horseman came loaded for bear for the November sale and indeed proved the leading purchaser by gross receipts.

“It's a wonderful feeling,” he said in his typically booming voice, referring to the results of the sale. “It makes you feel great when you can go to a sale and basically buy whatever you like. Many years ago when I first started, we had a limited bankroll and you had to settle. But when you're buying for all these very wealthy owners, it makes your job easy, it really does. But money does not make these horses win. That has nothing to do with it.”

Under the New Castle Farm banner, Crupi signed for a total of 26 horses as agent and accounted for turnover of $10,059,000. The most expensive of his purchases was the $3 million he gave for GI Rodeo Drive S. winner Photo Call (Ire) (Galileo {Ire}), and while Crupi declined to identify the buyer by name, he did indicate the 4-year-old would remain in training, at least for the time being, and be pointed towards the GI Matriarch S. at Del Mar at the end of the month. In that event, she could match up with Hard Not to Like (Hard Spun), who was purchased by DATTT Farm for $2.2 million on the opening day of the November sale.

Crupi believes that the results of the November sale, as well as the year's previous auctions, contributes to a generally positive marketplace and looks forward to the coming months.

“I do think it's a fair market and I think people need horses,” he opined. “I think it's going to be a good year next year selling horses, there's a great feeling right now and I feel right now that the industry is at a peak–buying, selling, whatever. If you have a quality horse and a good horse, it doesn't matter where they are, people manage to find them. If you can't make money now, I don't believe you ever will. I have people calling me every day for horses.

He added, “I think the 2-year-old in training sales will be fabulous. I think the top 15 or 20% will sell through the roof. And there will be good money for the others. I just think it's going to be a heck of a year. Everybody is looking for horses.”

That's a Wrap

Friday's 12th and final session of the November sale was topped by hip 4350, the 6-year-old mare Prime the Pump (Unbridled's Song). Consigned by Paramount Sales, agent, the gray mare is a daughter of the stakes-winning Cintarosa (Grand Slam), herself a half-sister to SW Gotta Rush (Wild Rush). Prime the Pump, offered in foal to Dialed In (Mineshaft), was purchased by Machmer Hall and Haymarket for a session-topping $53,000.