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Residual Value Is The Name Of The Game

21 Sep

Thoroughbred Horse Racing Partnerships Target Fillies For Residual Value

In today’s thoroughbred horse racing market it is becoming increasingly difficult to purchase quality individuals year in and year out at reasonable prices. With foal crops down close to 30% the last few years and demand remaining the same, prices have sky rocketed throughout the yearling and 2 year old in training sales. Where horse racing partnerships use to find value in first crop sires, they now have to compete with the bigger players and farms who have realized that there is value to be had with new and less established sires. This now puts thoroughbred horse racing syndicates in a very difficult situation. Finding value is harder than it’s ever been and even harder when the end goal is to be able to get part of your initial investment back to your owners at the end of the horse’s racing career.

With even fewer stallions in today’s market coupled with the overwhelming scrutiny put on a colt’s ability, family, conformation and race record, it is almost impossible to think that a thoroughbred horse racing partnership will be lucky enough to campaign a potential stallion. That is why in today’s market fillies are so valuable. A filly from a winning family with an average pedigree can present significant residual value potentially. With an exponentially greater number of broodmares compared to stallions, fillies on average have a much greater chance to present their owners with residual value at the end of the day.

The general checklist for a potential broodmare, aside from a winning family and decent pedigree is as follows. Attaining some sort of black type status in their career, whether it is winning a stake (most important) or being stakes placed. Multiple stakes wins increase the value, and graded stakes wins or placings increase the value dramatically. In addition, the $100,000 mark in earnings is a threshold that needs to be surpassed in order to become sought after in the broodmare market. Just having the basics, $100,000 in earnings and a stakes win a broodmare can be worth upwards of $100,000 at the end of the day. This number is significant, seeing as this will most likely put a significant amount your initial investment back in the owner’s pockets.

At Blinkers On Racing Stable we have been lucky enough to campaign one of the top filly sprinters in the last few years, Turbulent Descent. We purchased Turbulent Descent at the OBS April sale in 2010 for $160,000. By first crop sire Congrats we were taking somewhat of a chance, but her athleticism is what sold us. By Greg Gilchrist’s recommendation we purchased her as a 2 year old in training and she went on to earn over $950,000 for the Blinkers On Partners, with 3 G1 wins, 2 G1 placings a G2 win, and 2 unlisted stakes wins. With a solid pedigree and outstanding race record we sold her privately to one of the biggest farms in the game, Coolmore. She was purchased for a private amount, and you can imagine based on her credentials what that was, and she is now in foal to the world’s top sire Galileo. For Blinkers On and our partners, this was an outstanding return and experience that will keep us and our owners in the game.

When investing in thoroughbreds, remember there always has to be an exit strategy at the end of the horse’s racing career. Fillies present that residual value on a much higher percentage than colts do. Getting your initial investment or even part of it back at the end of the day is important because that will keep you reinvesting in the game.

Blinkers On

Blinkers On Racing Stable, a leader in thoroughbred horse racing partnerships, brings together the finest in thoroughbred horse racing expertise with the best in business know-how, and above all, a team of people you can trust, to manage your investment. We are committed to helping you experience the joys of thoroughbred horse ownership. For more information on thoroughbred partnerships visit our website or request an information package about our partnership. Keep up with horse racing in California by reading our Blog, finding us on Facebook, following us on Twitter, checking us out on LinkedIn, or visiting our YouTube Channel!

 
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Posted by on September 21, 2013 in Uncategorized

 

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