Are the elite sales horses being prepared for their big day in the ring or a career on the track?

By Lissa Oliver

A question that continues to divide commercial breeders and racehorse trainers is the definition of The Big Day. Many trainers believe too much pressure is put on horses during sales preparation, because for breeders the big day is a major price at a major sale. I therefore examined the high-end sales market, looking at the Top Ten sales toppers at major sales over a 10-year period, from 2005 to 2014, and their subsequent racing careers.

As we saw in the previous issue, the assumption that the highest-priced (and thereby possibly the recorders of the fastest times) breeze-up horses would be ready to run wasn't necessarily the case, with 40% of the graduates not seeing a racecourse until three-year-olds or older. Of those that raced as two-year-olds, the highest number of debuts were made in July, with August close behind. More started in September and October than in May and June, and only 11% managed to win first time out at two. Sixty percent ran at two, 26% won as two-year-olds, and 14% failed to reach the racecourse, with an overall figure of 56% winners from the Top Ten of the selected sales over the decade.

Similarly, the supposed advantage of choosing from mature horses at the National Hunt store sales wasn't obvious in the results. There were significantly fewer unraced purchases compared to the Flat sales, with 8% at the Derby Sale and only 4% at the Land Rover, but 59% of graduates went on to win, which was on a par with the breeze-up graduates and, as we shall now see, the yearlings. In fact, given the higher proportion of runners, the National Hunt store graduates could even be argued to have produced a poorer proportion of winners.

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In this issue, therefore, I will examine the yearling sales and the subsequent racecourse performance of the elite Top Ten purchases at the selected sales from 2005 to 2014. Career earnings have been included, but only as a guide to the general ability of the horse. The trading of horses in training means that earnings themselves have little relevance on whether a horse turned a profit on its original purchase price, and the residual paddock value of fillies also renders their career earnings irrelevant.

What the career earnings did reveal was that some British-trained winners have amassed only €4,000 or less in earnings. This covers just eight weeks of training fees and is a derisible reward for a winning owner, particularly when in Ireland, for example, minimum prize money has risen from €6,000 to €10,000 and a single win could pay the bills for four or five months.

Despite the prevailing idea that sales toppers don’t live up to expectations, the last 10 years of data of graduates of racing age (400 horses in total) paints a far rosier picture. Though 14% remained unraced, there is still a reasonably high strike rate of 59% winners graduating from the Top Ten of the four major European yearling sales, 11% of graduates winning at blacktype level.

Goffs Orby....

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Brexit - How high are the stakes?

By Lissa Oliver

When Britain submitted its notice to withdraw from the EU in March 2017, one of the biggest issues became border control and movement of horses, particularly between the EU Republic of Ireland and its bordering British Northern Ireland. A hard border between the adjoining counties of Ireland presents its own physical and political difficulties, but any restriction on the movement of horses between Ireland, Britain, and mainland Europe gives rise to problems that affect us all.

The uncertainty of border control also impacts on the safety of the national herd and disease control. The main principle of the Tripartite Agreement was to prevent the spread of disease and that, as Irish Horseracing Regulatory Board’s chief veterinary officer Dr Lynn Hillyer reminds us, is crucial and arguably the biggest issue when it comes to Brexit negotiations.

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Dr Lynn Hillyer

Currently, 10,000 horses move freely between the UK and Ireland every year. Seven thousand horses move overland between the Republic of Ireland (EU) and Northern Ireland (GB); 5,100 horses move between Ireland and France, the majority using Britain as a land bridge; and 5,000 horses move between Britain and France, according to Horse Racing Ireland (HRI) figures. Such freedom of movement is dependent upon the Tripartite Agreement, which will no longer be valid after 30th March 2019.

The Tripartite Agreement simplified the travel of horses between France, Britain, and Ireland and reduced the cost of moving horses between the three countries, allowing racehorses to be shipped without pre-movement veterinary checks and certification, and without the requirement for isolation and quarantine periods at their destinations.

“It’s not just about movement, it’s the protection of the herd against disease, and it’s absolutely critical that’s protected,” warns Dr Hillyer, who has been working with her French counterparts in ensuring that safeguards are in place in advance of the end of the Tripartite Agreement. “There has been added pressure on us because of the enormity of movement involved.”

Adding to the difficulty in resolving issues has been the British government’s reluctance to commit to decisions and state definite demands. MEP Mairead McGuinness has been advocating on behalf of Ireland and warned in January at the Irish Thoroughbred Breeders Association (ITBA) National Symposium, “We hope when we sit down to negotiate, common sense will prevail, but the EU is not prepared to tweak its principles to accommodate the UK. If we cannot overcome our problems, there will be real difficulties for your industry.”

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Fortunately, there has been a concerted team effort between all sectors of the thoroughbred industry in France and Ireland as they united to draw up a proposal to replace the Tripartite Agreement. Rather than sit back and wait, they decided to put together a draft for an improved alternative to the Agreement, the High Health Status (HHS) document for horses. “What is lovely is how the racing bodies and breeding associations have all pulled together, and that’s something that has come through the talks really strongly,” Dr Hillyer says.

Working with the Turf Club were HRI, the ITBA, Horse Sport Ireland – the representative body for the sport horse sector of show jumpers, dressage, and eventers – and France Galop. Paul Marie Gadot, head of the horses and control department at France Galop, explains, “The EU Commission draft doesn’t fulfil all our wishes as the breeding stock isn’t included in their proposal. A lot of work is still to be done. To be clear, we are working on an expedited movement system for high health horses.

“Currently, we are going to suggest a solution to the European Commission, which is working on the new legislation regarding movements of horses in the European Community and with the third countries. Actually, we are trying to address the modification of the European Law regarding horse movement, which isn’t linked to the Brexit negotiations. This way is more technical and also safer. I will be happy when a new system allowing easy horse movements will be in place.”

Both Dr Hillyer and Gadot have been happy with the level of awareness and support from their respective governments. “Our contacts in the Department of Environment, Food and Rural Affairs (DEFRA) have been fantastic and their response to our queries have come back by return,” says Dr Hillyer.

“The public information seminars here are probably less frequent than in Ireland,” agrees Gadot. “The preparatory work is done with the representatives of the equine industry, especially at racing and breeding levels, and we are in permanent contact with the hard core in charge of preparing the future of racing and breeding in Ireland and UK.

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Lissa Oliver's Spring Sales Analysis

By Lissa Oliver

A question that has divided commercial breeders and racehorse trainers since Tattersalls first decided to auction thoroughbreds is the definition of The Big Day.

For trainers, it is a major race at a major festival. Although every commercial breeder dreams of a high-profile winner, their big day is a major price at a major sale. Why else do we differentiate between commercial breeders and those who breed to race, lamenting the loss of the traditional owner-breeder at every dispersal sale?

If the outcome of the matings and sales preparation resulted in The Big Day for both parties, there would be no complaints, but as some have learned to their cost, the sales topper doesn’t always reach such dizzy heights again. The excitement and anticipation generated by the final knock-down figure builds to hype if and when the sales topper makes its racecourse debut, but can sometimes be followed by immediate disappointment and obscurity.

But is this always the case, and for all of the elite sales horses? And how does a big day in the sales ring affect the elite two-year-olds, prepared for the breeze-up sales that are often referred to as ready-to-run sales? Are the juveniles ready to run or, as some trainers suspect, over-boiled?

To see if any emerging pattern can shed light on these questions, I looked at the racecourse performances of the best-selling breeze-up juveniles and three-year-old National Hunt store horses from certain sales. I chose the period of 2005 to 2014 to obtain 10 years of data and to allow for the most recent of the graduates to reach their potential on the track, and I followed the careers of the 10 highest-priced lots sold (not unsold or bought in) at each selected sale. Because the Goresbridge Breeze-Up sale only began in 2006, a total of 490 horses were included from the five selected sales.

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As most trainers earn a living by trading horses, career earnings often have little relevance on whether or not a purchase turned a profit. Many of the graduates here have gone on to long careers in Japan, Hong Kong, Dubai, Australia, or the USA, so their second-hand value is likely to have exceeded their original purchase price. In the case of the fillies, a residual paddock value also renders their career earnings redundant. However, the earnings on track do provide a measure of the ability of the individual and the longevity of career. A non-blacktype winner amassing more than €30,000 has undoubtedly been a top-class handicapper or a tough and consistent performer throughout a lengthy career.

What is quite shocking to see is that some British-trained horses who have both won and placed second during their career have amassed only €4,000 or less in earnings. This covers just eight weeks of training fees and is surely scant reward for a winning horse, particularly when in Ireland, for example, minimum prize money has risen from €6,000 to €10,000 and a single win could pay the bills for five months.

Regardless of whether a Flat breezer or National Hunt store horse can recover its purchase price, we can be sure that the store horse will at least recover its physical and mental well-being by the time its career begins. Many trainers of two-year-olds argue differently when it comes to the breeze-up graduates and so we must also examine the results to see if the preparation for these sales has any negative effect. Though times are not officially taken at European breeze-up sales, it can be assumed that the 10 highest-priced two-year-olds put in the most impressive gallop, so it will be of interest to see how this impacts, if at all, their immediate career.

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Lycetts Team Champion Award

Published in European Trainer - October - December 2017, issue 59

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The important role played by stable staff has always been recognised by the horsemen and women employing them, though perhaps not always shown. It has certainly been overlooked beyond the stableyard, with the apparent view outside of the racing industry that stable work is unskilled and without long-term prospects. This misguided view has been detrimental, discouraging young people outside of the industry to explore job prospects and consider a role with thoroughbreds.

Recognising the individual skillset of the various roles within a working yard is important and while it may take time to get used to new job titles, where for centuries Lad or Lass sufficed, the titles are helping to identify particular roles and logical career progression. Above all, we are learning to openly value our team members and reward their skill and dedication, which means a tremendous amount in terms of job satisfaction and morale.

A wariness of comparing our workplace to any standard business is understandable, but it is important to recognise it as a business and every trainer wants to operate successfully. Peter Burnet, of the Peplow Group, has delivered learning and development programmes for individuals, teams and organisations since 1992. It's interesting to note that many of Peplow's programmes relate to the horseracing industry, “but can be adapted to any sector or organisation.” In this instance, our industry is setting the target for other industries to aspire to. Teamwork is naturally at its strongest in a working yard and can be seen as our industry's greatest, and to date overlooked, asset.

The team at Peplow explain that, “effective teamwork lies at the heart of every well managed organisation. The need to have a common purpose, clear objectives and a will to work cooperatively with colleagues is essential to maximise performance.”

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The true cost of training

First published in European Trainer issue 58 - July - September 2017

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The FRBC French Annual Review 2016-2017 shows that in 2016, the total distributed prize money in Britain, Ireland, France, and Germany was €528,357,185.

It’s interesting to note that in France (95%) in particular and in Ireland (65%), prize money is pretty much self-funded via racing organisations, which contribute only 48% to British prize money and as little as 4% to German prize money. The contribution from owners stands at 4% in France, 7% in Germany, 16% in Britain, and 23% in Ireland.

 With prize money recognised as the lifeblood of racing, it’s interesting to see where it originates and even more interesting to see where it goes. In Issue 39 of European Trainer (Autumn/Winter 2012) we featured the distribution of prize money, jockey and trainer fees, and percentages. At that time there were 1,500 licensed trainers throughout Europe chasing 10% of winning prize money, from which further deductions in many cases brought that down to 7%.

 The figures have changed little since, and it’s no surprise that the majority of trainers continue to survive largely on the trading of horses. Selling winning horses out of a stable can hardly be viewed as a sustainable business plan and it is never going to help trainers in the lower tier break through into the higher ranks when their best horses are sold and moved to other yards.

 With so many relinquishing their licence each year due to rising costs and the inability to make training pay, there have been recent calls to put more in place to help trainers. Horse Racing Ireland (HRI) earlier this year launched a trainer marketing scheme to assist in attracting new owners, as well as the new “Experience It” campaign to provide potential owners with the experience of a day at the races as an owner. HRI also plans to assist in the collection of training fees to protect against non-payers.

 Gaining new owners and ensuring that they pay is only half the battle, however, and the high-profile removal of Gigginstown Stud-owned horses from Willie Mullins has highlighted the problem of the fees themselves. Mullins is not alone in maintaining the same weekly fee for 10 years, and the example set by Gigginstown shows the dangers of increasing fees when that is no longer viable. Wages, insurance, utility bills, diesel, and feed and bedding prices have all increased during the past decade but most training fees have not, which means trainers have effectively reduced their fees each year.

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Staff Focus: Work experience and the pathways into racehorse care

First published in European Trainer issue 58 - July - September 2017

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The pedigrees of racing’s human participants are often as impressive as the horses in their care, but the industry is doing all it can to attract and welcome newcomers from outside of any equestrian background in the hope they might establish future dynasties of their own.

A shortage of staff Europe-wide means it is vital that new initiatives are introduced and supported, to encourage young people to seek careers within racing.

A traditional route into racing has always been simply knocking at a door and asking. While many trainers will welcome schoolchildren looking to gain experience, not every trainer finds them useful and not every young person finds the experience useful. The key lies in matching the correct yards to those taking a keen interest, and the Racing To School programme in Britain and the similar Go Racing Kids’ Club in Ireland are proving beneficial in that respect.

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Staff Pensions - Safeguarding the future

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First published in European Trainer issue 57 - April '17 - June '17

The Alex Scott Memorial Scholarship Winners of 2015 - in their own words

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This article appeared in - European Trainer, Issue 55, October to December 2016

The UK’s first Equine Flu Awareness Month (EFAM) set for April

The UK’s first Equine Flu Awareness Month (EFAM) is being launched in April with the aim of raising awareness, understanding and virus surveillance of this highly contagious evolving disease, say the organisers.  

The Animal Health Trust (AHT) and Merial Animal Health have joined forces to create the initiative. The AHT’s head of epidemiology and disease surveillance, Dr Richard Newton, believes that the campaign is a significant step in the battle against equine flu: “The creation of Equine Flu Awareness Month is an important step forward for the equine industry. 

“There have been 52 recorded outbreaks of equine influenza in the last two years, and whilst this may sound considerable, we believe it’s actually just the tip of the iceberg,” he says. 

“An equine influenza surveillance scheme at the AHT provides ongoing free sampling to all practices registered to the service, funded by The Horserace Betting Levy Board (HBLB).

“We are fortunate that the HBLB invests in this important scheme which also benefits the industry as a whole. We know that approximately just 40% of the total UK herd is vaccinated, so when you consider that all racehorses and many other competing and performance horses are vaccinated under compulsory rules, that leaves the remainder of the herd even less protected and the total percentage well short of the 70% required in order to prevent an epidemic¹,²,” he adds.  

“Many horses that don’t travel are still at risk of equine influenza, but frequently go unvaccinated. These animals are not only at risk of contracting and amplifying virus from their stable-mates that do travel, but are also at risk of airborne infection as equine flu is capable of travelling over a mile as an aerosol on the wind,” he concludes. 

For more information on Equine Flu Awareness Month visit www.equinefluawareness.com

References

1. Baker D. Equine Vet J 1986;18(2):93–96. 

2. Merial Proactive Insight benchmarking 2015.

About Merial

Merial is a world-leading, innovation-driven animal health company, providing a comprehensive range of products to enhance the health, well-being and performance of a wide range of animals. Merial employs 6,200 people and operates in more than 150 countries worldwide with close to €2 billion of sales. Merial is a Sanofi company. www.merial.com

Irish Champions Weekends

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Prize-money boost and “free entry scheme” for Longines Irish Champions Weekend

Building on the success of last year, total prize-money for the 2015 Longines Irish Champions Weekend has been increased to €4.03 million. The Group 1 QIPCO Irish Champion Stakes at Leopardstown on Saturday, September 12th remains one of the highest-rated races on the international calendar and will be worth €1.1 million in 2015, an increase of €100,000 on last year. The total prize money on offer at Leopardstown on the opening day of Longines Irish Champions Weekend will be €2.13 million.

Three races at the Curragh on Sunday, September 13th have also been raised in value. The Derrinstown Stud Flying Five will be run as a Group 2 race for the first time and its prize fund has been doubled from €100,000 to €200,000. The value of the Group 1 Palmerstown House Estate Irish St. Leger has increased from €300,000 to €350,000 and the Tattersalls Ireland Super Auction Sale Stakes also rises by €50,000 to €250,000. The total prize-money at the Curragh has risen by €200,000 to €1.9 million.

Four valuable premier handicaps will be run over the course of Longines Irish Champions Weekend. It is certainly a weekend of high-class racing action which will cater for all. Each of the handicap races boasts a value of €150,000 and will be run over six, seven, ten and twelve furlongs respectively.

Longines Irish Champions Weekend is, in effect, the first leg of a European Triple Crown of championship meetings, leading into the QATAR Prix de l’Arc de Triomphe meeting at Longchamp in early October and QIPCO British Champions Day at Ascot two weeks later.

What’s more, a series of races have been included in the ‘Longines Irish Champions Weekend Free Entry Scheme’ where the winning horses will be entitled to a refund equivalent to the total cost of running for a horse which had been entered at the initial entry stage, should they run in designated races on Longines Irish Champions Weekend.

Valuable and prestigious races in their own right, the additional bonus of free entry for Longines Irish Champions Weekend makes them all the more enticing:

RACE DATE QUALIFIER RACE FREE ENTRY FOR

6th August Ballyroan Stakes (Gp 3) 3yo+ 12f - Palmerstown House Estate Irish St Leger (Gp 1)

7th August El Gran Senor (L) 2yo 71/2f - John Deere Juvenile Turf Stakes (Gp 3)

7th August Abergwaun Stakes (L) 3yo+ 5f - Derrinstown Stud Flying Five Stakes (Gp 2)

12th August Hurry Harriet Stakes (L) 3yo+ 91/2f - Moyglare “Jewels” Blandford Stakes (Gp 2)

13th August Desmond Stakes (Gp 3) 3yo+ 8f - Clipper Logistics Boomerang Stakes (Gp 2)

22nd August Renaissance Stakes (Gp3) 3yo+ 6f - Derrinstown Stud Flying Five Stakes (Gp 2)

23rd August Debutante Stakes (Gp 2) 2yo 7f - Moyglare Stud Stakes (Gp 1)

23rd August Futurity Stakes (Gp 2) 2yo 7f - Goffs Vincent O’Brien National Stakes (Gp 1)

23rd August Royal Whip Stakes (Gp 3) 3yo+ 10f - QIPCO Irish Champions Stakes (Gp 1)

23rd August Irish St Leger Trial Stakes (Gp 3) 3yo+ 14f - Palmerstown House Estate Irish St Leger (Gp 1)

27th August Fairy Bridge Stakes (Gp 3) 3yo+ 71/2f - Coolmore Matron Stakes (Gp 1)

30th August Dance Design Stakes (Gp 3) 3yo+ 9f - Moyglare “Jewels” Blandford Stakes (Gp 2)

David Crosse - View from the Saddle

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David Crosse (European Trainer - issue 45 - Spring 2014)

Transporting horses - a weighty issue?

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(European Trainer - issue 45 - Spring 2014)

European Trainers Federation AGM 2013

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(European Trainer - issue 44 - Winter 2013)

Owner Trainer agreements across Europe

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THIS ARTICLE FIRST APPEARED IN - EUROPEAN TRAINER - ISSUE 44

VAT - are trainers being financially squeezed?

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THIS ARTICLE FIRST APPEARED IN - EUROPEAN TRAINER - ISSUE 44

Racing in Central Europe: Hoping for another Overdose

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THIS ARTICLE FIRST APPEARED IN - EUROPEAN TRAINER - ISSUE 41

Food for thought in Istanbul - The Asian Racing Conference

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(European Trainer - issue 39 - Autumn 2012)