Keeneland September Starts Monday

The Keeneland September Yearling Sale begins its 13-day run Monday morning in Lexington with the first of three sessions in its elite Book 1 and would-be buyers, a cross-section of trainers, agents and pinhookers, were out in force at the sales grounds Sunday on a brilliantly sunny day in the Bluegrass.

“We're looking forward to a good two weeks of sales,” reported Keeneland's Director of Sales Geoffrey Russell. “We're very proud of the performance of our graduates on the racetrack over the last couple of years–they've performed at a very high level. We've sold the winners of 38 Grade I races this year. Hopefully, buyers will recognize that and came back to restock and find their next Grade I winner.”

The yearling market this summer has produced results in keeping with the recent trend of market polarization, with high demand for a select few and interest tailing off under that top level. Consignors admitted to some pre-sale jitters about the depth of buyers once the marathon auction moves into its second week.

“That's a concern for the whole industry,” Russell said of a perceived lack of buyers at the middle level of the market. “We'll have to adapt as we go along. We're looking forward to the first three books and we're looking to find ways to bring more people out for the second week. We've expanded our outreach to more regional markets, to markets in the southwest and places like Canterbury Park where we haven't traditionally gone.”

Adrian Regan of Hunter Valley admitted busy days at the sales grounds ahead of the September sale have helped allay some of his concerns about the market.

“I'm a little bit nervous about the whole thing, just with what has gone on with previous sales this year,” Regan said. “But the way the traffic has been so far, I've gotten less nervous than I was Thursday. There seems to be plenty of traffic and quality customers. And from what I hear, Keeneland has done a very good job with their selection for Book 1. Everybody is telling me that there are a lot of nice horses around, which will hopefully lead to a good sale.”

Faced with a potentially challenging market, Regan said placement of horses within the sale has become even more important.

“We just have to, with the help of Keeneland, place the horses in the right book where they fit,” Regan said. “We try to have our group land in the top 33% of that particular day. That's always been our strategy. It doesn't always work out that way, but that's been the plan.”

Of the polarized market conditions, Headley Bell of Mill Ridge Sales said, “It's real. It's just what we are dealing with and you have to navigate accordingly.”

For Mill Ridge, that means sticking to a formula that has worked in the past.

“We always try to be specific in what we're doing, whether it's breeding a racehorse or raising a racehorse and we just try to stick to a plan,” Bell explained. “We've been doing it for a while and we try to stay consistent with breeding the best racehorse we can and let that be our driver. And that means pedigree and that means the way they are raised and everything. Markets can change, but we try to stay consistent to the best of our abilities. That's all you can do. We're in it for the long haul and we are going to try to avoid any traps if possible.”

Looking ahead to the next two weeks at Keeneland, Bell added, “There is plenty of supply available and there are plenty of buyers. So I think it will be a fair market.”

Still, the challenging market conditions leave little margin for error, according to Tommy Eastham of Legacy Bloodstock.

“I think a little offset knee that historically cost you 20%, will cost you 75% this year,” Eastham said. “I think there are numerous factors, but I think one factor is that it's gotten expensive to see if they can run and people are less willing to take a chance. Penalties are a little stronger this year.

As a consignor, you have to be aware of the market and what kind of penalties you have. Luckily I've done this for a lot of years now and a lot of horses, and I do have an understanding of the buying population and what they will live with and what they won't live with and individual buyers and what they want. It's a little more of a delicate art now, but it's got to make you better. The horseshoer has to be a little better, I've got to be a little better and work a little harder and make a few more phone calls and show a few more times.”

He continued, “The consignors that survived the 2008 recession are very good at what they do. So they are picking out the creme–the very best horses.”

During last year's Keeneland September sale, 2,745 yearlings sold for $281,496,100. The average was $102,549 and the median was $50,000. Eleven horses sold for seven figures, led by a colt by Tapit who brought $2.1 million from Mandy Pope's Whisper Hill Farm. The auction's second highest price was $1.65 million, also for a son of Tapit. Gainesway's leading sire has 45 yearlings catalogued in Book 1.

Also represented by multiple seven-figure yearlings a year ago was War Front, who had four million-dollar sales in 2015. The Claiborne stallion has 31 yearlings catalogued in Book 1 this year.

Book 1 sessions of the Keeneland September sale begin at 11 a.m., Monday through Wednesday. With a dark day Thursday, selling resumes Friday with bidding beginning at 10 a.m.

Teamwork Making Legacy Work

When Tommy Eastham relaunched Legacy Bloodstock, previously owned in partnership with Mark Toothaker, in 2013, the plan was always to have wife Wyndee Eastham join him in the family endeavor. Last January, Wyndee announced her departure from Breeders' Cup, where she had been executive assistant to the president and CEO for four years, to work full-time at the Lexington-based sales agency.

“We were always working towards this goal,” Tommy explained during a break in showing Sunday morning at Keeneland. “And now the business is healthy enough that we could make it work. We have three young kids and she wanted to spend more time with them and get them on the bus and it was really a family decision. She's always loved the horses and she is closer to the horses now, so she gets her horse fix in. And I think she is actually enjoying this part of it more, being able to have time with the horses.”

Tommy admitted the couple's skills complement each other.

“My strength has always been at the sales, but I need help at the admin and she is strong with the admin,” he said. “So it works out perfectly. She can get on me and tell me what to do. It's been very good. It's been an easy transition for us.”

Among Legacy Bloodstock's book 1 offerings is hip 594, a strapping chestnut colt by Kitten's Joy. The yearling, a full-brother to multiple graded stakes winner Kitten's Point, was purchased by a pinhooking partnership for $120,000 at this year's Keeneland January sale.

“He is a May 15 colt and he was in the January sale,” Eastham said of the yearling. “And this [pinhooking] group really bet on him because he was a typical May 15 colt–not as old and they were able to see the potential in him and were able to pick him up.”

The youngster has matured well since January, according to Eastham.

“He's gained bone and foot and did everything you'd want a horse to do,” the consignor said. “These type of horses are really hard to come by. Mentally, he has a great disposition. He is energetic and willing to please. I'm really proud to have him in the shedrow.”

As the husband-and-wife team gets set to present its first September sale since Wyndee left the Breeders' Cup, Tommy Eastham is already looking ahead to adding more family members to Legacy Bloodstock.

“Our kids are still just 12, 10 and seven,” Tommy Eastham said. “But they love the horses. So hopefully that will transfer over and they'll want to be part of the business. That's our goal.”